need help with 7) a) b)

COG for 7b) should come out to 408,113

extra info to solve below

other material rate 0.3939, conversion 1.5238

7) Greg, the production manager for the Blending Department approached Martha, the production manager for the Packaging Department regarding the company's profit targets for the year ending June 30th. Based on preliminary profit figures, the company is within $2,5000 of the month's target profit. Greg has asked Martha to pull a few strings to assure they will reach their target and all employees will receive a bonus. Greg indicates that Martha can just change her estimate of the percentage completion of her ending work in process inventories. Martha is unsure. Greg says that he has worked hard to keep costs down in his department and does not want to lose his bonus because Martha couldn't keep her department under control. a) Would Martha need to increase or decrease the estimated percentage completion to increase the company's operating profit? Explain your answer. b) Since the cost categories, "transferred in" and "bottles are not affected by the estimated percent of completion, we can limit our analysis here to the two categories that are affected by percent completion. Assume Martha were to change her estimated percentage completion by 10 in the desired direction. (Change % from 25% to 15% or 35%); i) What will the revised equivalent units be for "Other Materials and Conversion cost categories for the Bottling Department? Revised Equivalent Units Other Material Conversion Equivalent units in ending WIP- Packaging inventory Equivalent units completed and transferred to finished goods Total Equivalent units to account ii) What will the revised cost per equivalent unit be for "Other Materials and Conversion" cost categories for Bottling Department? Note: Use your Total costs to account for for each cost category from you work in Step 3 Revised Cost per Equivalent Unit Other Material Conversion Cost Per Equivalent Unit iii) Use the information from your revised calculations to complete the Revised Analysis boxes in the table above. Revised Analysis Other Material Conversion WIP -Ending balance Costs of goods completed and transferred out Total Costs accounted for iv) Compare these costs with the amounts from your original calculation in 3e above. What impact does this Revised Analysis have on the company's balance sheet and income statement? Your comment should be between 30 and 50 words. Note: The bottom row Total here will EQUAL the bottom row Total from 3e above. (Maybe different due to rounding) WIP-Blending 25,000 $ Bal 6/1 1b) Account Titles WIP-Blending Raw Material Inventory Debit S i) Credit 205,300 S 205,300 ii) S WIP-Blending Factory Payroll/Wages Payable 56,151 $ 56,151 iii) S 68,629 WIP-Blending Manufacturing Overhead 68,629 iv) S 314,160 WIP-Bottling WIP-Blending $ 314,160 1c) WIP-Blending 25,000 205,300 $ 314,160 WIP-Bottling 56,151 68,629 WIP-Bottling Bal 6/1 WIP-Blending $ 314,160 Bal 6/1 S Materials Labor S Overhead S Bal 6/30 S 40,920 Bal 6/30 Bal 6/1 S Purchase $ Raw Material Inventory 120,000 183,300 $ 205,300 WIP-Blending Finished Goods Inventory Bal 6/1 $ WIP-Bottling Bal 6/30 S 98,000 Bal 6/30 $ 2 (a) Opening Balance in WIP Bottling A/C Tfrd in Costs Bottle Costs Other Material Costs Conversion Costs Total OP WIP 55000 111000 18000 80500 264500 WIP Bottling Ale 264500 314160 Bal 6/1 WIP Blending Bottles Other Material Conversion Bal 6/30 2 (b) (0) Cost of Bottles added to Bottling Deptt No of units tfrd from Blending X $ 2.50 -280500 units X $ 2.50 701250 2 (0) (0) Cost of Other Materials added to Bottling Deptt 1/2 the Material Cost added to Blending Deptt from RM Inventory -1/2 X 205300 102650 Journal Entries Credit Account Titles WIP Bottling Raw Material Inventory Debit 701250 701250 102650 WIP Bottling Raw Material Inventory 102650 2 (b)(iv) T-Account Bal 6/1 WIP Blending Bottles Other Material Conversion Bal 6/30 WIP Bottling Ale 264500 314160 701250 102650 20 Conversion Costs of Bottling Deptt Conversion Cost of Blending Deptt Labour+Overhead 56151 +68629 = 124780 Conversion Costs of Bottling Deptt = 3 X 124780 = 374340 Direct Labour = 40% of 374340 =149736 Overhead =(374340-149736) = 224604 Journal Entries Credit Account Titles WIP Bottling Wages payable Debit 149736 149736 224604 WIP Bottling Mfg Overhead 224604 T-Account Bal 6/1 WIP Blending Bottles Other Material Labour Overhead Bal 6/30 WIP Bottling A/c 264500 314160 701250 102650 149736 224604 Answer for 3a Units in Bottling June 1 Physical units for BOTTLING 44,000 Units completed and transferred 272,500 out during June Units transferred in from Blending during June 280,500 Units in Bottling June 30 52,000 Units "to account for" 324,500 Units "to account for 324,500 We can find at 2(b)(i) that how many bottles transferred in. Calculation of Units completed and transferred = Units in Bottling June 1 + Units transferred in from Blending - Units in Bottling June 30 - 44,000 units + 280,500 units - 52,000 units = 272,500 units Answer for 3b Transferred in (Blending costs) Equivalent units (ACCOUNTED FOR) Bottles Other Materials Conversion 52,000 52,000 33,800 26,000 Equivalent units in ending WIP- Bottling inventory Equivalent units completed and transferred to Finished Goods" Total Equivalent units accounted for 272,500 272,500 272,500 272,500 324,500 324,500 306,300 298,500 Calculation of Equivalent units in ending WIP Bottling inventory Transferred in & Direct Material i.e. Bottles are 100% complete here and in general too. So, 100% of Units in Bottling June 30 i.e. 52,000 to be taken. Other materials are only 65% completed. So, 65% of Units in Bottling June 30 to be taken i.e. 33,800 units (52,000 units x 65%) Conversion are only 50% completed. So, 50% of Units in Bottling June 30 to be taken i.e. 26,000 units (52,000 units X 65%) Calculation of Equivalent units completed and transferred to Finished Goods Finished means 100% completed. So, 100% of Units completed and transferred out during June i.e. 272,500 units to be taken for all cost categories. Answer for 3c WIP-Bottling Costs Added Cost Category Beginning during June (b) Transferred in from Blendings 55,000 $ 314,160