III, Computations( 57'). 1..Palmer Manufacturing produces weather vanes. For the year just ended, Palmer produced 20,000 weather vanes with the following total costs: Direct materials $40,000 Direct labor 70,000 Overhead 20,000 Selling expenses 12,250 Administrative expenses 24,400 During the year, Palmer sold 15,800 units for $12 each. Beginning finished goods inventory consisted of 630 units with a total cost of $4,095. There were no beginning or ending inventories of work in process. Required: (1) Calculate the unit costs for the following: direct materials, direct labor, overhead, prime cost, and conversion cost. (2) Calculate cost of goods manufactured, cost of goods sold and gross profit. ( 17') 2.During May, the following transactions were completed and reported by Jerico Company: a. Materials purchased on account, $60,100. b. Materials issued to production to fill job- order requisitions: direct materials, $50,000; indirect materials, $8,800. c. Payroll for the month: direct labor, $75,000; indirect labor, $36,000; administrative, $28,000; sales, $19,000. d. Depreciation on factory plant and equipment, $10,400. e. Property taxes on the factory accrued during the month, $1,450. f. Insurance on the factory expired with a credit to the prepaid insurance account, $6,200. g. Factory utilities, $5,500. h. Advertising paid with cash, $7,900. i. Depreciation on office equipment, $800; on sales vehicles, $1,650. j. Legal fees incurred but not yet paid for preparation of lease agreements, $750. k. Overhead is charged to production at a rate of $18 per direct labor hour. Records show 4,000 direct labor hours were worked during the month. 1. Cost of jobs completed during the month, $160,000. The company also reported the following beginning balances in its inventory accounts: Materials Inventory $ 7,500 Work-in-Process Inventory 37,000 Finished Goods Inventory 50,000 Required: (1) Prepare journal entries to record the transactions occurring in May. (2) Prepare a statement of cost of goods manufactured. (3) If the overhead variance is all allocated to cost of goods sold, by how much will cost of goods sold decrease or increase? ( 20")