Old Country Links, Inc., produces sausages in three production departments Mixing, Casing and Curing, and Packaging. In the Mixing Department, meats are prepared and ground and then mixed with spices. The spiced meat mixture is then transferred to the Casing and Curing Department, where the mixture is force-fed into casings and then hung and cured in climate- controlled smoking chambers. In the Packaging Department, the cured sausages are sorted, packed, and labeled. The company uses the weighted-average method in its process costing system. Data for September for the Casing and Curing Department follow: Percent C Work in process inventory, September 1 Work in process inventory, September 30 100% 100% 60% 20% 50% 10% Work in process inventory, September 1 Cost added during September 9456 SOS 229,154 S 23,766143,449 1,828 Mixing cost represents the costs of the spiced meat mixture transferred in from the Mixing Department. The spiced meat mixture is processed in the Casing and Curing Department in batches; each unit in the above table is a batch and one batch of spiced meat mixture produces a set amount of sausages that are passed on to the Packaging Department. During September, 103 batches (i.e., units) were completed and transferred to the Packaging Department. Required 1. Determine the Casing and Curing Department's equivalent units of production for mixing, materials, and conversion for the month of September. (5 points) 2. Compute the Casing and Curing Department's cost per equivalent unit for mixing, materials, and conversion for the month of September. (5 points) 3. Compute the Casing and Curing Department's cost of ending work in process inventory for mixing, materials, conversion, and in total for September. (5 points) 4. Compute the Casing and Curing Department's cost of units transferred out to the Packaging Department for mixing. materials, conversion, and in total for September. (5 points) 5. Prepare a cost reconciliation report for the Casing and Curing Department for September. (5 points) The Fashion Shoc Company operates a chain of women's shoe shops that carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a sales commission on each pair of shoes sold plus a small base salary The following data pertains to Shop 48 and is typical of the company's many outlets: Selling pee 30,000 Total fised eses Required 1. What is Shop 48's annual break-even point in unit sales and dollar sales? (4 points) 2. Prepare a CVP graph showing cost and revenue data for Shop 48 from zero shoes up to 17,000 pairs of shoes sold each year. Clearly indicate the break-even point on the graph. (6 points) 3. If 12,000 pairs of shoes are sold in a year, what would be Shop 48's net operating income (loss)? (3 points) 4. The company is considering paying the Shop 48 store manager an incentive commission of 75 cents per pair of shoes (in addition to the salesperson's commission). If this change is made, what will be the new break-even point in unit sales and dollar sales? (Do not round intermediate calculations. Round your final answers to the nearest whole number.) (4 points) 5. Refer to the original data. As an alternative to (4) above, the company is considering paying the Shop 48 store manager 50 cents commission on each pair of shoes sold in excess of the break-even point. If this change is made, what will be Shop 48's net operating income (loss) if 15,000 pairs of shoes are sold? (Do not round intermediate calculations.) (4 points) 6. Refer to the original data. The company is considering eliminating sales commissions entirely in its shops and increasing fixed salaries by $31,500 annually. If this change is made, what will Shop 48's new break-even point in unit sales and dollar sales? (Do not round intermediate caleulations.) (4 points) Percent Completed Units Mixing Materials Conversion Work in process inventory, September I Work in process inventory, September 30 100 % 100% 60% 20% 50% 10% Work in process inventory, September Cost added during September Mixing Materials Conversion 9.45S6 S 108 S1,828 S 229,154 S 23.766 S 143,449 Question 1: (25 points) Gold Nest Company of Guandong, China, is a family-owned enterprise that makes birdcages for the South China market. The company sells its birdcages through an extensive network of street vendors who receive commissions on their sales. The company uses a job-order costing system in which overhead is applied to jobs on the basis of direct labor cost. Its predetermined overhead rate is based on a cost formula that estimated S85,000 of manufacturing overhead for an estimated activity level of $50,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows: 10,70 Raw materials Work in process Finished goods S 4,900 S 8,800 During the year, the following transactions were completed: a. Raw materials purchased for cash, S 169,000. n production, $140,000 (materials costing $125,000 were charged directly to jobs; the remaining materials were indirect) c. Cash paid to employees as follows: 168.00 c. Cash paid to employees as follows: Direct labor Indirect labor Sales commissions 168,00 214,40 S 23,000 Administrative salaries S 42,000 a. Cash paid for rent during the year was $18,500 (S13,100 of this amount related to factory operations, and the remainder related to selling and administrative activities) b. Cash paid for utility costs in the factory, $14,000. c. Cash paid for advertising, $13,000. d. Depreciation recorded on equipment, S24,000. (S15,000 of this amount related to equipment used in factory operations; the remaining $9,000 related to equipment used in selling and administrative activities.) e. Manufacturing overhead cost was applied to jobs, S ? f. Goods that had cost $229,000 to manufacture according to their job cost sheets were completed g. Sales for the year (all paid in cash) totaled $511,000. The total cost to manufacture these goods according to their job cost sheets was $216,000. The Fashion Shoe Company operates a chain of women's shoe shops that carry many styles of shoes that are all sold at the same price. Sales personnel in the sho on each pair of shoes sold plus a smal base salary ps are paid a sales commission The following data pertains to Shop 48 and is typical of the company's many outlets Per Pair of Shoes Selling price Variable expenscs 0.00 Invoice cost S 13.5 4.50 18,00 Annual Total variable expenses Fixed expenses S 30,000 20,000 100,000 10 Rent Salaries Total fised expenses Required 1. What is Shop 48's annual break-even point in unit sales and dollar sales? (4 points) 2. Prepare a CVP graph showing cost and revenue data for Shop 48 from zero shoes up to 17,000 pairs of shoes sold each year. Clearly indicate the break-even point on the graph. (6 points) 3. If 12,000 pairs of shoes are sold in a year, what would be Shop 48% net operating income (loss)? (3 points) 4. The company is considering paying the Shop 48 store manager an incentive commission of 75 cents per pair of shoes (in addition to the salesperson's commission). If this change is made, what will be the new break-even point in unit sales and dollar sales? (Do not round intermediate calculations. Round your final answers to the nearest whole number.) (4 points) 5. Refer to the original data. As an alternative to (4) above, the company is considerin 50 cents commission on each pair of shoes sold in excess of the break-even point. If this change is made, what will be Shop 48's net operating income (loss) if 15,000 pairs of shoes are sold? (Do not round intermediate calculations.) (4 points) g paying the Shop 48 store mana ger 6. Refer to the original data. The company is considering eliminating sales commissions entirely in its shops and increasing fixed salaries by $31,500 annually. If this change is made, what will Shop 48's new break-even point in unit sales and dollar sales? (Do not round intermediate calculations.) (4 points)