Bakerston Company is a manufacturing firm that usesjob-order costing. The company's inventory balances were as followsat the beginning and end of the year:

	Beginning Balance			Ending Balance
Raw materials	$	11,400		$	15,300
Work in process	$	32,400		$	14,900
Finished goods	$	106,000		$	122,000

The company applies overhead to jobs using apredetermined overhead rate based on machine-hours. At thebeginning of the year, the company estimated that it would work17,600 machine-hours and incur $264,000 in manufacturing overheadcost. The following transactions were recorded for theyear:

•	Raw materials were purchased, $411,000.
•	Raw materials were requisitioned for use in production,$407,100 ($385,000 direct and $22,100 indirect).
•	The following employee costs were incurred: directlabor, $337,000; indirect labor, $74,000; and administrativesalaries, $160,000.
•	Selling costs, $111,000.
•	Factory utility costs, $30,000.
•	Depreciation for the year was $125,000 of which $113,000is related to factory operations and $12,000 is related to selling,general, and administrative activities.
•	Manufacturing overhead was applied to jobs. The actuallevel of activity for the year was 14,300machine-hours.
•	Sales for the year totaled $1,286,000.

Required:
a.	Prepare a schedule of cost of goods manufactured in goodform. (Do not round predetermined overhead rate. Input all amountsas positive values.)

     

b.	Was the overhead underapplied or overapplied? By howmuch? (Do not round predetermined overhead rate. Input the amountas a positive value.)

    

c.	Prepare an income statement for the year. The companycloses any underapplied or overapplied overhead to Cost of GoodsSold. (Input all amounts as positive values.)