$1.$ Tara Treasures had the following information on June $1$st:

Beginning Units: $20,000$

Units Added during the month: $50,000$

Units Completed $38,000$

Units NOT completed are $30\%$ complete as to Conversion Costs

All Direct Materials are added $100\%$ at the BEGINNING of the manufacturing process:

Beginning DM Costs $$50,000$

DM Costs added $$80,000$

Conversion Costs are incurred throughout the manufacturing process:

Beginning Conversion Costs: $$75,000$

Conversion Costs Added: $$40,000$

REQUIRED:

A$.$ Prepare the Process Cost Schedule for the end of June.

B$.$ WHAT IS THE TOTAL COST PER UNIT?

C$.$ HOW MUCH COSTS SHOULD BE TRANSFERRED TO THE NEXT DEPARTMENT FOR THE $38,000$ COMPLETED UNITS.

$2.$ Tara$$s Treasures uses a Plantwide Manufacturing Overhead Allocation Rate. Tara$$s estimates that the Manufacturing Overhead for the year $=$ $$2,400,000$ and they use Direct Labor or DL Hours to allocate the overhead to the $2$ products they produce. Tara estimates that DL Hours for the year $=40,000$ hours.

Product A used $15,000$ DL Hours and Product B used $25,000$ DL Hours for the year.

A$.$ How much manufacturing overhead would each product be charged for Manufacturing Overhead using a single rate application method?

Tara is thinking of implementing an ABC Method using the following Cost Pools and Cost Drivers:

Cost Pools Amount Cost Drivers Amount

Machine Set$-$Up $$750,000$ # set$-$ups $25,000$

Quality Inspect $$450,000$ # inspect $100,000$

Purchase Orders $$250,000$ # of PO $50,000$

Machine Costs $$950,000$ # hours $10,000$

Product A had the following data:

# of machine set$-$ups $15,000$

# inspections $60,000$

Purchase Orders $40,000$

Machine Hours $7,000$

Product B had the following data:

# of Machine Set$-$ups $10,000$

# Inspections $40,000$

# Purchase Orders $10,000$

# Machine Hours $3,000$

B$.$ What would be the amount of Manufacturing Overhead charged to Product A and Product B if Tara implements Activity Based Costing $($ABC$)?$

C$.$ How much would Product A be Over or undercharged for Manufacturing Overhead if Tara implements the ABC method instead of using the Plantwide Rate?

D$.$ How much would Product B be under or overcharged for Manufacturing Overhead if Tara implements the ABC method instead of using a plantwide rate?