Donna Company submitted the following data for May 31, 2021:

Direct labor cost 160,000

Cost of goods sold 550,000
Factory overhead 240,000
Inventories: 1-May-21 31-May-21
Finished goods 150,000 122,000
Work in process 129,200 124,000
Materials 124,000 115,000

Compute the following:

1. Total materials issued to production.
2. Total manufacturing cost.
3. Prime cost.
4. Conversion cost.
5. Cost of goods put into process.
6. Cost of goods manufactured.
7. Cost of goods sold.
Simple Company employs actual costing for its production. The entity provided the following data
concerning its production during the year:

Decrease in direct materials 500,000

Direct labor cost 400,000
Actual factory overhead 300,000
Increase in work in process 200,000
Decrease in finished goods 100,000

Compute the cost of goods manufactured.

A manufacturing company shows the following amounts in the cost of goods sold statement and the
statement of comprehensive income for the year 2020:

Jan. 1, 2020 Dec. 31, 2020

Materials 100,000 150,000
Work in process 87,000
Finished goods 80,000
Materials used 590,000
Cost of goods sold 750,000
Cost of goods manufactured 800,000
Total manufacturing cost 790,000

Determine the following amounts:

1. Work in process Jan. 1, 2020.
2. Finished goods Dec. 31, 2020.
3. Purchases for 2020.
The income statement data for each of the following cases are provided below:
Case 1 Case 2 Case 3 Case 4
Direct materials 29,250 36,000 22,500 22,500
Cost of goods sold 110,500 85,500
Cost of goods manufactured 117,000 84,000 131,250
Direct labor 18,000 31,500 30,000
Factory overhead 32,500 24,000 67,500
Finished goods, beginning 6,500 15,000 18,000 26,250
Finished goods, ending 9,000 18,000 26,250
Gross profit 84,500 76,500
Net operating income 26,000 22,500 67,500
Operating expenses 21,000
Sales 195,000 126,000 162,000 300,000
Total goods available for sale
Total manufacturing cost 120,250 90,000
Work in process, beginning 16,250 13,500
Work in process, ending 6,000 18,000 22,500
Ivan Corporation operates an automible service facility that specializes in replacing mufflers on compact
cars. The following table shows the cost incurred during the month when 1,000 mufflers were replaced.

Number of muffler replacements 800 1,000 1,200

Total costs:
Fixed costs 18,000.00
Variable costs 12,000.00
Total costs 30,000.00

Cost per muffler replacement

Fixed costs
Variable costs
Total cost per muffler replacement

Required:
1. Fill in the missing amounts
2. Determine the cost formula
3. Assuming the service fee is P50 per muffler replacement and there were 500 replacements:
3.1. Compute the total service revenue.
3.2. Compute the total cost of the muffler replacements.
3.3. Compute the net income.
ers on compact
were replaced.
Information about Indiana Industrial’s utility cost for the
last six months of 2010 follows. Th e high–low method will be used to develop a cost
formula to predict 2011 utility charges, and the number of machine hours has been
found to be an appropriate cost driver. Data for the fi rst half of 2010 are not being
considered because the utility company imposed a signifi cant rate change as of July 1, 2021

Month Machine hrs. Cost

July 33,750.00 13,000.00
August 34,000.00 12,200.00
September 33,150.00 11,040.00
October 32,000.00 11,960.00
November 31,250.00 11,500.00
December 31,000.00 11,720.00

a. What is the cost formula for utility expense?

b. What is the budgeted utility cost for September 2011 if 31,250 machine hours are
projected?
Green Shade manufactures insulated
windows. Th e fi rm’s repair and maintenance (R&M) cost is mixed and varies most
directly with machine hours worked. Th e following data have been gathered from
recent operations:

Month MHs Cost

May 1,400.00 9,000.00
June 1,900.00 10,719.00
July 2,000.00 10,900.00
August 2,500.00 13,000.00
September 2,200.00 11,578.00
October 2,700.00 13,160.00
November 1,700.00 9,525.00
December 2,300.00 11,670.00

a. Use least squares regression to estimate a cost formula for repairs and maintenance.
b. Estimate the total cost at 1,500 machine hours.