Momo is producing earrings and other DIY products. Momo always has it's own special product every month. In February, Momo produces it's signature earrings called Bloom, the earrings only produce in February until Mid-March and will be sold in February and March. They use French Hooks, Beads, Headpins, and Round Nose Pliers. They also use all of the French Hooks, Beads, and Headpins for all the other unique earrings based on customer design. You're hired by the company to maintain their finance and also their management report that related to financing and accounting. Question 1: What should you do as the management accountant in the company? Explain the answer using steps you should do first when you working in a company and what kind of activity that you can do as management accountant that relate to decision making, planning, and control. Question 2: Based on your opinion, which costing method is more effective used for Bloom and for other unique earrings? Are they using the same costing method or different costing method? Explain your answer based on the description of each method and your arguments. Calculation 1: All of the material that is used in the first production department is added at the beginning of processing in that department. Data for February for the first production department follow: Percent Complete Materials Conversion 100% 40% 85% 60% Units 500 1,000 Work in process inventory, February 1 .......... Work in process inventory, February 28......... Materials cost in work in process inventory, February 1... Conversion cost in work in process inventory, February 1............... $2,000 Units started into production .......... on......................................... 2,500 Units transferred to the next production department ................... 2,000 Materials cost added during February .............................. $2,335 Conversion cost added during February ....... ........ $4,500 As Momo's consultant, blends together units and costs from the current period with units and costs from the prior period it could be a best way for Bloom. So you have to: 1. Determine the equivalent units for February for the first process and the costs per equivalent unit for February for the first process. 2. Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process for February Calculation 2 Momo received job order from a girl named Tiffany. She ordered two kind of earrings but the designs were from her, even Tiffany named all her earring designs: A-Voca-Do Fancy Momo looked at her design and agree to make earrings that Tiffany's design. Then Momo calculate the cost: Momo's predetermined overhead rate is $3.00 per direct labor- hour, with the direct labor wage rate is $5.00 per hour. The following information pertains to A-Voca-Do: Direct materials . . . . . . . . . . . . . $15 Direct labor . . . . . . . . . . . . . . . . $20 The following information pertains to Fancy: Direct materials ............. $30 Direct labor ................ $40 Required: 1. What are the total manufacturing costs assigned to Job A- Voca-Do and Fancy? 2. If Job A-Voca-Do consists of 20 units and Fancy consist of 40 unit, what is the average cost assigned to each unit included in the job for each of them
