Question

1- Salvadore Inc., a local retailer, has provided the following data for the month of September: Merchandise inventory, beginning balance $44,900 Merchandise inventory, ending balance $50,600 Sales $262,600 Purchases of merchandise inventory $133,500 Selling expense $19,100 Administrative expense $53,900 The cost of goods sold for September was: $133,500 $127,800 $206,500 $139,200

2- Buckeye Company has provided the following data for maintenance cost:

	Prior Year	Current Year
Machine hours	22,000	24,500
Maintenance cost	$31,400	$34,900

Maintenance cost is a mixed cost with variable and fixed components. The fixed and variable components of maintenance cost are closest to:

$10,400 per year plus $.714 per machine hour

$31,400 per year plus $1.00 per machine hour

$24,500 per year plus $.714 per machine hour

$10,400 per year plus $1.00 per machine hour

3- The following costs were incurred in September:

Direct materials	$39,100
Direct labor	$30,400
Manufacturing overhead	$18,000
Selling expenses	$14,500
Administrative expenses	$34,700

Prime costs during the month totaled:

$69,500

$87,500

$136,700

$48,400

Answer 1

Q1.
Answer is $ 127800
Explanation:
Beginning Inventory of material				44900
Add: Purchase				133500
Less: Ending inventory of material				50600
Cost of Goods sold				127800
Q2.
Answer is $10400 per year plus $ 1.00 per machine hour
Explanation:
		Change Cost		Change Units
Prior year		32400		22000
Current year		34900		24500
Change		2500		2500
Variable c ost per unit: Change in Cost/ Change in Units
		2500 /2500 = 1.00 per unit
Total Fixed cost: 32400 - (22000*1.0): $ 10400
Q3.
Answer is $ 69500
Explanation:
Direct material		39100
Direct labour		30400
Prime cost		69500