1) Thornton foods bakes and sells 2,000 dozen muffins each week to food service operations. Among the costs are bakers' salaries, $24,000; production management salaries, $16,000; production equipment operating costs, $32,000; and flour and ingredient costs, $15,000 Using this information, compute: (a) prime costs and (b) conversation costs.

2) Calculate Cost of Goods Sold for the following two companies:

LEWIS, INC MERCER CO.

Beginning Inventory:

Merchandise $250,000

Finished Goods $550,000

Cost of Goods Purchased 460,000

Cost of Goods Manufactured 688,000

Ending Inventory:

Merchandise 128,000

Finished Goods 350,000

3) Information for Maxim Manufacturing is presented below. Compute both the cost of goods manufactured and the cost of goods sold for maxim Manufacturing.

Beginning raw materials invetory $36,800

Beginning work in process inventory 21,200

Direct labor 81,000

Beginning finished goods invetory 64,000

Total facture overhead 126,000

Raw materiels purchased 21,500

Ending raw materials invetory 40,000

Ending work in process inventory 20,000

Ending finished goods inventory 46,000