equipment information is in the first picture

Namaste Company The Business Situation Namaste Company manufactures a unique yoga mat. The company began operations December 1, 2018. Its accountant quit the second week of operations, and the company is searching for a replacement. The company has decided to test the knowledge and ability of a candidates interviewing for the position. Each candidate will be provided with the informatio below and then asked to prepare a series of reports, schedules, budgets, and recommendatic based on that information. The information provided to each candidate is as follows. $15,500 11,000 -0- 1,500 800 1,500 1,000 300 500 400 Cost Items and Account Balances Administrative salaries Advertising Cash, December 1 Depreciation on factory building Depreciation on office equipment Insurance on factory building Miscellaneous expenses-factory Office supplies expense Professional fees Property taxes on factory building Raw materials used Rent on production equipment Research and development Sales commissions Utility costs-factory Wages-factory Work in process, December 1 Work in process, December 31 Raw materials inventory, December 1 Raw materials inventory, December 31 Raw material purchases Finished goods inventory, December 1 70,000 6,000 10,000 40,000 UNU 70,000 0,000 70,000 10,000 Production and Sales Data Number of mats produced Expected sales in units for December ($40 unit sales price) Expected sales in units for January Desired ending inventory Direct materials per finished unit Direct materials cost Direct labor hours per unit Direct labor hourly rate 8,000 10,000 20% of next month's sales 1 kilogram $7 per kilogram .35 $20 Cash Flow Data Cash collections from customers: 75% in month of sale and 25% the following month. Cash payments to suppliers: 75% in month of purchase and 25% the following month. Income tax rate: 45%. Cost of proposed production equipment: $720,000. Manufacturing overhead and selling and administrative costs are paid as incurred. Desired ending cash balance: $30,000. 13. Determine the cash payback period on the proposed production equipment purchase, assuming a monthly cash flow as indicated in the cash budget (requirement 10f). 51 3. Prepare a schedule of cost of goods manufactured for the month of December 2018. Namaste company Schedule Cost of goods manufactured For the month of December 2018 | 54 55 Work in process, Dec 1 56 Direct materials used 57 Direct Labor used 70.000.00 70,000.00 11,300.00 58 Manufacturing overhead applied 59 Total manufacturing costs 60 Total cost of work in process $151,300.00 $151,300.00 61 Less: Work in process, Dec 31 $151,300.00 62 Cost of goods manufactured 63 64 Sheet1 Sheet2 4. Determine the cost of producing a mat. Cost of goods manufactured $151,300.00 Number of mats produced 10,000 $15.13 AN B C D 36 37 EN 38 7. Compute the unit variable cost for a ma 39 90 Total variable cost 91 Number of mats produced 92 Unit variable cost $180,000 10,000 $18 94 95 96 8. Compute the unit contribution margin and the contribution margin ratio. 97 $40 98 Unit price 99 Unit variable cost $14 $26 100 Unit contribution margin 101 Contribution margin ratio 65% 9. Calculate the break-even point in units and in sales dollars. Fixed costs $49,400 1.900.00 Break-even point in units (fixed costs / 8 unit contribution margin Break-even point in dollars (fixed costs 19 / contribution margin ratio) 10 $76,000 3 11. Prepare a flexible budget for manufacturing costs for activity levels between 8,000 and 10,000 units, in 1,000-unit increments. 6 Units 8,000 9,000 10,000 7 Variable cost 8 Direct material (units *1kg*7) $ 56,000 $ 63,000 $ 70,000 9 Direct labor (units*0.35*$20) $ 56,000 $ 63,000 $ 70,000 10 Depreciation of factory building $ 1,500 $ 1,500 $ 1,500 11 Insurance on factory building $ 1,500 $ 1,500 $ 1,500 12 Miscellaneous expenses factory $ 1,000 $ 1,000 $ 1,000 13 Property taxes on factory buildin: $ 400 $ 400 $ 400 14 Rent on production equipment $ 6,000 $ 6,000 $ 6,000 15 Utility cost factory $ 900 $ 900 $ 900 16 Total manyfactoruing $ 123,300 $ 137,300 $ 151,300 17 Namaste Company The Business Situation Namaste Company manufactures a unique yoga mat. The company began operations December 1, 2018. Its accountant quit the second week of operations, and the company is searching for a replacement. The company has decided to test the knowledge and ability of a candidates interviewing for the position. Each candidate will be provided with the informatio below and then asked to prepare a series of reports, schedules, budgets, and recommendatic based on that information. The information provided to each candidate is as follows. $15,500 11,000 -0- 1,500 800 1,500 1,000 300 500 400 Cost Items and Account Balances Administrative salaries Advertising Cash, December 1 Depreciation on factory building Depreciation on office equipment Insurance on factory building Miscellaneous expenses-factory Office supplies expense Professional fees Property taxes on factory building Raw materials used Rent on production equipment Research and development Sales commissions Utility costs-factory Wages-factory Work in process, December 1 Work in process, December 31 Raw materials inventory, December 1 Raw materials inventory, December 31 Raw material purchases Finished goods inventory, December 1 70,000 6,000 10,000 40,000 UNU 70,000 0,000 70,000 10,000 Production and Sales Data Number of mats produced Expected sales in units for December ($40 unit sales price) Expected sales in units for January Desired ending inventory Direct materials per finished unit Direct materials cost Direct labor hours per unit Direct labor hourly rate 8,000 10,000 20% of next month's sales 1 kilogram $7 per kilogram .35 $20 Cash Flow Data Cash collections from customers: 75% in month of sale and 25% the following month. Cash payments to suppliers: 75% in month of purchase and 25% the following month. Income tax rate: 45%. Cost of proposed production equipment: $720,000. Manufacturing overhead and selling and administrative costs are paid as incurred. Desired ending cash balance: $30,000. 13. Determine the cash payback period on the proposed production equipment purchase, assuming a monthly cash flow as indicated in the cash budget (requirement 10f). 51 3. Prepare a schedule of cost of goods manufactured for the month of December 2018. Namaste company Schedule Cost of goods manufactured For the month of December 2018 | 54 55 Work in process, Dec 1 56 Direct materials used 57 Direct Labor used 70.000.00 70,000.00 11,300.00 58 Manufacturing overhead applied 59 Total manufacturing costs 60 Total cost of work in process $151,300.00 $151,300.00 61 Less: Work in process, Dec 31 $151,300.00 62 Cost of goods manufactured 63 64 Sheet1 Sheet2 4. Determine the cost of producing a mat. Cost of goods manufactured $151,300.00 Number of mats produced 10,000 $15.13 AN B C D 36 37 EN 38 7. Compute the unit variable cost for a ma 39 90 Total variable cost 91 Number of mats produced 92 Unit variable cost $180,000 10,000 $18 94 95 96 8. Compute the unit contribution margin and the contribution margin ratio. 97 $40 98 Unit price 99 Unit variable cost $14 $26 100 Unit contribution margin 101 Contribution margin ratio 65% 9. Calculate the break-even point in units and in sales dollars. Fixed costs $49,400 1.900.00 Break-even point in units (fixed costs / 8 unit contribution margin Break-even point in dollars (fixed costs 19 / contribution margin ratio) 10 $76,000 3 11. Prepare a flexible budget for manufacturing costs for activity levels between 8,000 and 10,000 units, in 1,000-unit increments. 6 Units 8,000 9,000 10,000 7 Variable cost 8 Direct material (units *1kg*7) $ 56,000 $ 63,000 $ 70,000 9 Direct labor (units*0.35*$20) $ 56,000 $ 63,000 $ 70,000 10 Depreciation of factory building $ 1,500 $ 1,500 $ 1,500 11 Insurance on factory building $ 1,500 $ 1,500 $ 1,500 12 Miscellaneous expenses factory $ 1,000 $ 1,000 $ 1,000 13 Property taxes on factory buildin: $ 400 $ 400 $ 400 14 Rent on production equipment $ 6,000 $ 6,000 $ 6,000 15 Utility cost factory $ 900 $ 900 $ 900 16 Total manyfactoruing $ 123,300 $ 137,300 $ 151,300 17