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Ainex Corporation Ainex Corporation manufactures chocolate products. Specifically, we analyze the product line of chocolates for mass consumption, direct competition from the classic Nestle "Red Box". Technical characteristics of the production process In the first production department, Melting, the necessary raw materials are incorporated for the manufacture of chocolates, mainly cocoa, sugar and milk. This section crushes cocoa, and mixes with milk and sugar, to proceed in this same center, to heat these raw materials, so you get the chocolate pastry to manufacture chocolates. Once passed this stage of the process, the pastry is stored in a heated warehouse, because is melted how must be incorporated into the next section. Modeling section incorporates, from the heated warehouse, the chocolate pastry from the previous section. This pastry is distributed among the corresponding molds to proceed with further drying, so the products obtained in this section are already finished chocolates with a weight of 10 grams each. Once finished, these chocolates are kept in a conditioned warehouse not to lose their characteristics, waiting to be placed in the appropriate boxes on the last phase of the production process. Packaging is responsible for place the chocolates inside the boxes and leave the product ready for sale. The company has two ways to present the finished product: 25 chocolates' box and 100 chocolates' box. Once packaged, they are left in the available for sale warehouse. Inventory, purchasing and production information Raw materials Beginning inventory Purchases Ending inv. Cocoa 5 kg x 3E/kg 82 kg x 3.25E/kg 2 kg Sugar I kg x 0.85E/kg 12 kg x 0.90E/kg 3 kg Milk 10 liters a 0,70E/liter 30 liters a 0,72E/liter 15 liters 25 u. box empty 10 boxes x 2E/box 500 boxes x 2.50E/box 1 10 boxes 100 u. box empty 10 boxes x 7E/box 30 boxes a BE/box 10 boxes Product Beginning inventory Production Ending inv. Chocolate pastry 20 kg x 16,50E/kg 120 kg 15 kg Chocolates 2.000 ch. x 0.3725E/ch. 12.500 chocolates 1.500 choc. 25 chocolates' box 80 boxes x 15E/box 400 box 15 box 100 chocolates' box 5 boxes x 50E/box 30 box 15 boxesCOST ACCOUNTING The valuation of inventories of raw materials is FIFO, while the inventories of nished products and semi-nished product is the weighted average price (WAP). Other costs for the period Direct labor cost in Meltingl Modeling and Packaging for the period amounted to 1.198,25e, 512.50: and 1.04500: respectively. In this nal section. 140: correspond to the packaging of the 100 chocolates' box. Manufacturing overhead of these three sections during the same period were 900e, 8006 and 1.200e respectively; 100 of the 120 hours spent in Packaging were used to pad: the 25 chocolates' box, and 20 hours to pack the 100 chocolates' box. The sale price of the 25 chocolates' box is 20 clunit. and the 100 chocolates' box 6odunit. Sales department has a 5% commission on total revenues. Administrative expenses cost 1.000s. Required: 1. Calculate the cost of raw materials consumed during the period. 2. Calculate the total cost and unit cost in Melting. 3. Calculate the total cost and unit cost in Modeling. 4. Calculate the total cost and unit cost of the 25 chocolates' box in Packaging. 5. Calculate the total cost and unit cost of the 100 chocolates' box in Packaging. 6. Calculate the total cost of ending inventories. 7. Calculate the income statement under absorption cost system