The following information is available for the Merritt Corporation for the month of May:

Sales$200,000

Direct labor22,000

Indirect materials (included in total factory overhead)2,000

Advertising expense4,000

Sales commissions3,000

Total actual factory overhead30,000

Raw materials purchased25,000

Total factory overhead applied27,000

Administrative salaries6,000

Raw materials inventory May 116,000

Raw materials inventory May 3113,000

Work in process inventory May 121,000

Work in process inventory May 3122,000

Finished goods inventory May 136,000

Finished goods inventory May 3134,000

Required: construct an income statement for the month of May. Show all details. You can show three separate sub-schedules or one detailed income statement.

The following information is available for the Wilbur Corporation of Australia:

Actual Results

Heating CostsTemperature

January$1,00082 degrees

February1,50087

March60071

April90076

May95079

June1,20083

Required: Using the High/Low method, what would you estimate the heating cost to be if the temperature were 92 degrees? Show all work.