1. Uxmaiz Corporation had only one job in process during MayJob X32Zand had no finished goods inventory on May 1. Job X32Z was started in April and finished during May. Data concerning that job appear below:

Beginning balance	$	7,000
Charged to the job during May
Direct materials	$	12,600
Direct labor	$	3,500
Manufacturing overhead applied	$	6,900
Units completed		250
Units in process at the end of May		0
Units sold during May		115

In May, overhead was overapplied by $450. The company adjusts its cost of goods sold every month for the amount of the overhead that was underapplied or overapplied.

Using the indirect method, determine the cost of goods sold for May.

Cost of goods sold: __________

2. Maxwell Company manufactures and sells a single product. The following costs were incurred during the companys first year of operations:

Variable costs per unit:
Manufacturing:
Direct materials		$ 13
Direct labor		$ 7
Variable manufacturing overhead		$ 1
Variable selling and administrative		$ 1
Fixed costs per year:
Fixed manufacturing overhead	$ 288,000
Fixed selling and administrative expenses	$ 198,000
During the year, the company produced 24,000 units and sold 20,000 units. The selling price of the companys product is $48 per unit.
a. Assume that the company uses absorption costing: Compute the unit product cost. Unit product cost:________ b. Prepare an income statement for the year

3. Assume that the company uses variable costing:

a.	Compute the unit product cost: ______________

b. Prepare an income statement for the year. Less: Variable expenses Less: Fixed Expenses 3. The companys controller believes that the company should have set last years selling price at $49 instead of $48 per unit. She estimates the company could have sold 19,000 units at a price of $49 per unit, thereby increasing the companys gross margin by $4,000 and its net operating income by $5,000. Using the variable costing approach, by how much will profits increase or decrease if the price increase in implemented?