Microsoft is producing three types of software: Windows, Office, and Azure. The cost details are as follows:

• Windows:
  • Direct Materials: $20,000,000
  • Direct Labor: $15,000,000
  • Overhead Rate: 150%
• Office:
  • Direct Materials: $25,000,000
  • Direct Labor: $18,000,000
  • Overhead Rate: 140%
• Azure:
  • Direct Materials: $30,000,000
  • Direct Labor: $20,000,000
  • Overhead Rate: 130%

Requirements:

1. Compute the total cost for each software product.
2. Determine the total overhead applied to each job.
3. Prepare a Job Cost Sheet for each software product.
4. Calculate the cost per unit if Microsoft produces 1,000,000 units of Windows, 800,000 units of Office, and 500,000 units of Azure.
5. Prepare an Equity Statement reflecting these job costs.