1. Cost Data for Managerial Purposes Budgeting (10 Points): Refer to Exhibit 1.5. Assume that Carmen's Cookies is preparing a budget for the month ending September 30. Management prepares the budget by starting with the actual results for April that appear in Exhibit-1.5. Then, management considers what the differences in costs will be between April and September. Management expects cookie sales to be 20 percent greater in September than in April, and it expects all food costs (e.g., flour, eggs) to be 20 percent higher in September than in April because of the increase in cookie sales. Management expects "other" labor costs to be 25 percent higher in September than in April, partly because more labor will be required in September and partly because employees will get a pay raise. The manager will get a pay raise that will increase the salary from $3,000 in April to $3,500 in September. Utilities will be 5 percent higher in September than in April. Rent will be the same in September as in April. Now, fast forward to carly October and assume the following actual results occurred in September: 1 I A B 1 CARMEN S COOKIES 2 Retail Responsibility Center 3 Actual Costs for the 4 Month Ending September 30 5 Actual 6 (September 7 Food 8 Flour $ 2,700 9 E994 6.500 10 Choociate 2.100 11 Nuts 2.300 12 Other 2200 13 Total food $18,300 14 Labor 15 Manager $ 3,00 16 Other 1.800 17 Toallabor $ 5,260 18 Utes 2 200 1. Lawrence Chemicals manufactures industrial solvents. On November 1, it has s no work-in- process inventory. It starts production of 13,000 barrels of solvent in November and completes 8,000 barrels. The costs of the resources used by Lawrence in November consist of the following: 1 .. $223,000 Materials Conversion costs (labor and overhead) Total. + + + 272,000 $495,000 The production supervisor estimates that the ending work in process is 60% complete. 1 1 a.- Compute the cost of solvent transferred to finished goods and the amount in work-in- process ending inventory as of November 30. b. - Draw the cost flow diagram for Lawrence Chemicals for November