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Madibeng Company is a manufacturing Company that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year: Raw Materials Work in Process Finished goods Beginning balance R14 000 R27 000 R62000 Ending Balance R22 000 R9 000 R77 000 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 33,000 machine-hours and incur R231,000 in manufacturing overhead cost. The following transactions were recorded for the year: . Raw materials were purchased, R315,000. Raw materials were requisitioned for use in production, R307,000 (R281,000 direct and R26,000 indirect). The following employee costs were incurred: direct labor, R377,000; indirect labor, R96,000; and administrative salaries, R172,000. Selling costs, R147.000. Factory utility costs, R10,000. Depreciation for the year was R127,000 of which R120,000 is related to factory operations and R7,000 is related to selling general, and administrative activities. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,000 machine-hours. Sales for the year totaled R1,253,000. Required: a. Prepare a schedule of cost of goods manufactured. (10 marks) b. Was the overhead underapplied or overapplied? By how much?(2 marks) C. Prepare an income statement for the year. The company closes any underapplied or overapplied overhead to Cost of Goods Sold. (8 marks)

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