Exercise 1. Bilal, Inc. produces a high quality insulation material that passes through two processes. Data for November for the first process follow: Materials Units Conversion Work in process inventory, November 1... 40,000 135,150 Units started into production.. Units transferred out... $170,000 .380,000 260,000 Work in process inventory, November 30... .35,000 Cost added during November (period) $500,540 $853,500 The beginning work in process inventory was 80 % complete with respect to materials and 75% complete with respect to conversion. The ending work in process inventory was 45% complete with respect to materials and 10% complete with respect to conversion. Required Assume the company uses the weighted - average method of accounting for units and costs. 1. Compute the equivalent units for November's activity for the first department 2. Determine the costs per equivalent unit for November 3. Determine the cost of ending work in process inventory 4. Determine the cost of the units transferred to the next department. Material Comversion Units transferred to the next department Work in process, ending: Materials Labor and overhead Equivalent units of production MaterialsComversion Cost of beginning work in process Costs added during the period Total cost (a) Equivalent units of production (b)k Cast per equivalent unit (a):(b) Department I Cost of Ending WIP Inventory and Units Transferred out Materials Conversion Ending WIP inventery Department Cost of Ending WIP Inventory and Units Transferred out Materials Comversion Ending WIP inventory: Equivalent units (a) Cost per equivalent unit (b) Cost of Ending WIP inventory (a"b Units completed and transferred out: Units transferred (a) Cost per equivalent unit (b)e Cost of units transferred out (a"b) Department Cost Reconciliation Costs to be accounted for: Cost of beginning Work in Process Inventory Costs added to production during the period Total cost to be accounted for Cost accounted for as follows Cost of ending Work in Process Inventory Cost of units transferred out Total cost accownted for Exercise 2. For the coming year, Saad Company anticipates the following information: Selling price Variable expense $3.7 per unit Fixed expense $37,400 Units of sales S8 per unit 20,000 units Required: 1. Compute the break-even point in terms of units must be sold (at budgeted sales). 2. Compute the break-even point in dollars. 3. Compute CM ratio to 2 decimal places. 4. Compute the margin of safety. 5. Compute the degree of operating leverage 6. If next month sales will decrease by 10%, what will be the percentage change in net operating income