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.