Reference no: EM132870813

Question -

A. The following information is available for the Merritt Corporation for the month of May:

Sales $200,000

Direct labor 22,000

Indirect materials (included in total factory overhead) 2,000

Advertising expense 4,000

Sales commissions 3,000

Total actual factory overhead 30,000

Raw materials purchased 25,000

Total factory overhead applied 27,000

Administrative salaries 6,000

Raw materials inventory May 1 16,000

Raw materials inventory May 31 13,000

Work in process inventory May 1 21,000

Work in process inventory May 31 22,000

Finished goods inventory May 1 36,000

Finished goods inventory May 31 34,000

Required - Construct an income statement for the month of May. Show all details. You can show three separate sub-schedules or one detailed income statement.

B. The following information is available for the Wilbur Corporation of Australia:

Actual Results

Heating Costs Temperature

January $1,000 82 degrees

February 1,500 87

March 600 71

April 900 76

May 950 79

June 1,200 83

Required - Using the High/Low method, what would you estimate the heating cost to be if the temperature were 92 degrees? Show all work.