Activity One $(1)$Bedron Company is a closely held investment service group that has been quite successful over the past $5$ years, consistently providing most members of the top management group with $50\%$ bonuses. In addition, both the chief financial officer and the chief executive officer have received $100\%$ bonuses. Bedron expects this trend to continue.Recently, Bedrons top management group, which holds $35\%$ of the outstanding shares of common stock, has learned that a major corporation is interested in acquiring Bedron. The other corporations initial offer is attractive and is several dollars per share higher than Bedrons current share price. One member of management told a group of employees under him about the potential offer. He suggested that they might want to purchase more Bedron stock at the current price in anticipation of the takeover offer.Required:Do you think that the employees should take the action suggested by their boss? Suppose the action is prohibited by Bedrons code of ethics. Now suppose that it is not prohibited by Bedrons code of ethics. Is the action acceptable in that case?Activity Two $(2)$W$.$ W$.$ Phillips Company produced $4,000$ leather recliners during the year. These recliners sell for $$400$ each. Phillips had $500$ recliners in finished goods inventory at the beginning of the year. At the end of the year, there were $700$ recliners in finished goods inventory. Phillips accounting records provide the following information:Purchases of raw materials $$320,000$ Beginning materials inventory $46,800$ Ending materials inventory $66,800$ Direct labor$200,000$ Indirect labor $40,000$ Rent, factory building $42,000$ Depreciation, factory equipment $60,000$ Utilities, factory $11,900$ Salary, sales supervisor $$90,000$ Commissions, salespersons$180,000$ General administration $300,000$Beginning work$-$in$-$process inventory $13,040$ Ending work$-$in$-$process inventory $14,940$ Beginning finished goods inventory $80,000$ Ending finished goods inventory$114,100$ Required:Prepare a statement of cost of goods manufactured.Compute the average cost of producing one unit of product in the year.Prepare an income statement for external users.Given the detailed cost information provided, what managerial accounting policies or strategies could W$.$ W$.$ Phillips Company consider implementing to optimize its cost structure, improve profitability, and enhance overall financial performance? Additionally, how might the company use the cost information to make informed decisions regarding pricing strategies, production efficiency, and resource allocation?Submit your answers in a Word document.