Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year:
Beginning Balance Ending Balance
Raw materials $14,200 $22,000
Work in Process $27,200 $9200
Finished Goods $62,200 $77,200
The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 33,200 machine-hours and incur $245,680 in manufacturing overhead cost. The following transactions were recorded for the year:
Raw materials were purchased, $315,200.
Raw materials were requisitioned for use in production, $307,200 ($280,800 direct and $26,400 indirect).
The following employee costs were incurred: direct labor, $377,200; indirect labor, $96,200; and administrative salaries, $172,200.
Selling costs, $147,200.
Factory utility costs, $10,200.
Depreciation for the year was $139,000 of which $120,400 is related to factory operations and $18,600 is related to selling, general, and administrative activities.
Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,040 machine-hours.
Sales for the year totaled $1,261,000.
Required:
do not enter any commas and round to the nearest dollar
Compute Cost of Goods Manufactured
Compute Operating Income