Use below information for Questions $1$ to $4$: The smelting department of Company X has following production and cost

data for September:

$$ Production: Beginning WIP $200$ units that are $100\%$ complete as to materials and $88\%$ complete as to conversion

costs; units started into production $1,000$ units; units transferred out to next department $930$ units; ending WIP

are $100\%$ complete as to materials and $40\%$ complete as to conversion costs.

$$ Manufacturing costs: Beginning WIP TL$8,000$ materials, TL$9,200$ labor and TL$2,000$ MOH costs. In current

period, TL$50,300$ worth of materials, TL$25,000$ worth of labor and TL$38,000$ worth of MOH costs are incurred.

Q$-1)$ Compute the material cost portion of the ending inventory if the company uses WA method to compute equivalent

units.

Q$-2)$ Compute the conversion cost portion of the ending inventory if the company uses FIFO method to compute

equivalent units.

Q$-3)$ Compute the material cost portion of the transferred out inventory if the company uses FIFO method to compute

equivalent units.

Q$-4)$ Compute the conversion cost portion of the transferred out inventory if the company uses WA method to compute

equivalent units.

Use below information for Questions $5$ to $6$:

Luxury Furniture designs and builds factory$-$made, premium, wood armoires for homes. All are of white oak. Its

budgeted MOH costs for the year $2017$ are as follows.

Overhead Cost Pools Amont $($$$)$

Purchasing $43,000$

Handling materials $50,000$

Production $($cutting$,$ milling, finishing$)130,000$

Setting up machines $85,000$

Inspecting $60,000$

Inventory control $($raw materials and finished goods$)88,000$

Utilities $100,000$

For the last $4$ years, Luxury Furniture has been charging overhead to products on the basis of materials cost. For the

year $2017,$ materials cost of $$530,000$ were budgeted. Jim Brigham, owner$-$manager of Luxury Furniture, recently

directed his accountant, Bob Borke, to implement the ABC system that he has repeatedly proposed. At Jim Brigham$$s

request, Bob and the production foreman identify the following cost drivers and their usage for the previously budgeted

MOH cost pools.

Overhead Cost Pools Activity Cost Drivers Expected Use of Cost Drivers

Purchasing Number of orders $500$

Handling materials Number of moves $5,300$

Production $($cutting$,$ milling, finishing$)$ Direct labor hours $65,000$

Setting up machines Number of setups $1,000$

Inspecting Number of inspections $4,000$

Inventory control $($raw materials and finished goods$)$ Number of components $40,000$

Utilities Square feet occupied $58,000$

Debbie Steiner, sales manager, has received an order for $10$ luxury armoires from Thom$$s Interior Design. At Debbie$$s

request, Bob prepares cost estimates for producing $10$ armoires so Debbie can submit a contract price per armoire to

Thom$$s$.$ He accumulates the following data for the production of $10$ armoires.

$2$

DM Cost $($$$)5,000$

DL Cost $($$$)3,800$

DL Hours $200$

Number of Purchase Orders $3$

Number of Materials Moves $32$

Number of Machine Setups $4$

Number of Inspections $20$

Number of Components $640$

Number of Square Feet Occupied $320$

Q$-5)$ What is the unit manufacturing cost per armoire under traditional costing?

Q$-6)$ What is the unit manufacturing cost per armoire under the proposed activity$-$based costing?

Use below information for Questions $7$ to $10$: Jane Botosan operates a bed and breakfast hotel in a resort area near Lake

Michigan. Depreciation on the hotel is $$60,000$ per year. Jane employs a maintenance person at an annual salary of

$$41,000$ and a cleaning person at an annual salary of $$24,000.$ Real estate taxes are $$10,000$ per year. The rooms rent at

$$123$ per person per night including breakfast. Laundry and cleaning services cost $$10\mathrm{.}0$ per person per night and the

food is $$5\mathrm{.}0$ per person per night.

Q$-7)$ Determine the BEP in sales.

Q$-8)$ Determine TNI in sales for $$50,000$ NI$.$

Q$-9)$ Jane is considering changing the business strategy. She considers installing additional cleaning machines which will

decrease laundry and cleaning service per person per night by $$3.$ However, fixed depreciation cost will increase by

$$4,000.$ Determine BEP in sales if the changes are made. $($Do NOT round the rental number to integer.$)$

Q$-10)$ Determine BEP in units at which Jane would be indifferent between the current and proposed business models.

$($Do NOT round the rental number to integer.$)$