1. A manufacturing company has a beginning finished goods inventory of $16,400, raw material purchases of $19,800, cost of goods manufactured of $36,100, and an ending finished goods inventory of $19,600. Describe and explain the mathematical formula and steps used in computing the cost of goods sold for this company.

2. Based on predicted production of 17,000 units, a company anticipates $255,000 of fixed costs and $216,750 of variable costs. Describe and explain the mathematical formula and steps used in computing the flexible budget amounts of fixed and variable costs for 15,000 units.