Part Two Instructions Example of an Equivalent Units Schedule Using a spreadsheet and based on the information provided in the next section, complete the following requirements. 1. Determine the predetermined overhead rate. 2. Determine the total number of drones to account for. 3. Prepare an equivalent unit's schedule. The schedule should follow the format above. 4. Determine the started and completed units by using the following formula: Started - Ending = Completed and Transferred Out - Beginning. 5. Calculate the total cost of aluminum and the cost per equivalent unit for the direct material aluminum. 6. Calculate the total cost and the cost per equivalent unit for the direct materials motor and propellers. 7. Determine the total conversion cost by using the predetermined rate and the direct labor fate. Then determine the conversion cost per drone. 8. Determine the unit cost per drone (Material cost per unit plus Conversion Cost per unit). 9. Prepare a Cost of Production report. This report should show all costs transferred into Work-inProcess and the costs transferred to Finished Goods (COGM) by using the Equlvalent Units Schedule. This process uses fiFo costing. 10. Determine the amounts for the following. a) Ending Work-in-Process Inventory in Units AND Dollars b) Ending Finished Goods Inventory in Units AND Dollars c) Cost of Goods Sold d) Over/Under Applied Manufasturing Overhead e) Show and calculate an Income Statement f) Gross Profit g) Income before Taxes h) Tax amount 30% i) Net Income (When calculating Net Income use the adjusted COGS) 11. Prepare the necessary Journal Entries related to the manufacturing cycle using the chart of account numbers below instead of account names when entering the journal entries. The Chart of Accounts is shown below. For example: Instead of Debit Raw Materials - Aluminum debit account number 12000$5,000.00 and credit account number 10000$5,000.00 when purchasing the raw materials aluminum for cash. An example will be provided for each journal entry. Please follow instructions carefully. 12. Once you have completed the work you will enter the information into Blackboard. An example will be provided on Blackboard for you to follow. Make sure that you follow the formatting exactly as given in the example, such as commas, dollar signs, spacing etc. If you format the answer in a manner not consistent with the example it will be counted incorrect and you will not receive the necessary points. Enter all answers carefully. Ex: Dr 10000$5,000.00Cr40000 $5,000,00. (Note that the cents in all dollar amounts are included and that there are no periods after Dr or Cr ) Example of Production Report Dynamic Drones, Inc. Cost of Production Report For the year ended December 31, 2023 III tne cost or rroauction keport ror costs Transferred to Finished Goods and the WIP Process T-Account Comparative Balance Sheet \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Drnamic Drones } \\ \hline \multicolumn{5}{|c|}{ Comparatwe Balance Sheet } \\ \hline \multicolumn{5}{|c|}{ Decermber 31,2023 and 2022} \\ \hline Assets & & 2023 & \multicolumn{2}{|c|}{2022} \\ \hline \multicolumn{3}{|l|}{ Current Assets: } & & \\ \hline Cash & s & 60,000 & & 80,000 \\ \hline Accounts Receivable, Net & s & 140,000 & $ & 100,000 \\ \hline Merchandise Inventory & $ & 110.000 & $ & 70,000 \\ \hline Prepaid Rent & $ & 20,000 & s & 10,000 \\ \hline Totol Current Assets & s & 330,000 & 5 & 260.000 \\ \hline \multicolumn{5}{|l|}{ Property, Plant, and Equipment: } \\ \hline Equipment & s & 400.000 & S & 191,000 \\ \hline Less: Accumulated Depreciation - Equipment & $ & (60,000) & s & (42,400) \\ \hline Total Property. Plant and Fquipment & $ & 340,000 & 5 & 148,600 \\ \hline Total Assets & $ & 670,000 & $ & 408,600 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multirow{2}{*}{\begin{tabular}{l} Liabilities and Stockholders' Equity \\ Current Liabilities: \end{tabular}} & \multicolumn{2}{|c|}{2023} & \multicolumn{2}{|c|}{2022} \\ \hline & & & & \\ \hline Accounts Payable & 5 & 150,000 & $ & 40,000 \\ \hline Unearned Revenue & $ & 40.000 & $ & 50.000 \\ \hline Salaries Payable & $ & 40,000 & s & 30,000 \\ \hline Federal Income Taxes Payable & $ & 10.000 & 5 & 10,000 \\ \hline Total Current Liabilities. & s & 240,000 & $ & 130.000 \\ \hline \multicolumn{5}{|l|}{ Long. Term tiabilities } \\ \hline \multirow{2}{*}{\begin{tabular}{l} Note Parable \\ Total Uabilities \end{tabular}} & 5 & 50.000 & & \\ \hline & $ & 290,000 & $ & 130,000 \\ \hline \multicolumn{5}{|l|}{\begin{tabular}{l} Stockholders' Equity \\ Common Stock $10 Par \end{tabular}} \\ \hline \begin{tabular}{l} Cormmon Stock, $10 Par \\ Paid-In Capital in Excess of Par \end{tabular} & 5 & 150,000 & $ & 98,600 \\ \hline Paid-In Capital in Excess of Par & & 20,000 & $ & . \\ \hline \begin{tabular}{|l|l|} Retained Earnings \\ \end{tabular} & $ & 210,000 & s & 180,000 \\ \hline \multirow{2}{*}{\begin{tabular}{l} Totol Scockholders' Equily \\ Total Libilities and Stockholders' Equity \end{tabular}} & $ & 380,000 & $ & 278,600 \\ \hline & $ & 670,000 & $ & 403,600 \\ \hline \end{tabular} 4 lpage Comparative Income Statement Part Two Instructions Example of an Equivalent Units Schedule Using a spreadsheet and based on the information provided in the next section, complete the following requirements. 1. Determine the predetermined overhead rate. 2. Determine the total number of drones to account for. 3. Prepare an equivalent unit's schedule. The schedule should follow the format above. 4. Determine the started and completed units by using the following formula: Started - Ending = Completed and Transferred Out - Beginning. 5. Calculate the total cost of aluminum and the cost per equivalent unit for the direct material aluminum. 6. Calculate the total cost and the cost per equivalent unit for the direct materials motor and propellers. 7. Determine the total conversion cost by using the predetermined rate and the direct labor fate. Then determine the conversion cost per drone. 8. Determine the unit cost per drone (Material cost per unit plus Conversion Cost per unit). 9. Prepare a Cost of Production report. This report should show all costs transferred into Work-inProcess and the costs transferred to Finished Goods (COGM) by using the Equlvalent Units Schedule. This process uses fiFo costing. 10. Determine the amounts for the following. a) Ending Work-in-Process Inventory in Units AND Dollars b) Ending Finished Goods Inventory in Units AND Dollars c) Cost of Goods Sold d) Over/Under Applied Manufasturing Overhead e) Show and calculate an Income Statement f) Gross Profit g) Income before Taxes h) Tax amount 30% i) Net Income (When calculating Net Income use the adjusted COGS) 11. Prepare the necessary Journal Entries related to the manufacturing cycle using the chart of account numbers below instead of account names when entering the journal entries. The Chart of Accounts is shown below. For example: Instead of Debit Raw Materials - Aluminum debit account number 12000$5,000.00 and credit account number 10000$5,000.00 when purchasing the raw materials aluminum for cash. An example will be provided for each journal entry. Please follow instructions carefully. 12. Once you have completed the work you will enter the information into Blackboard. An example will be provided on Blackboard for you to follow. Make sure that you follow the formatting exactly as given in the example, such as commas, dollar signs, spacing etc. If you format the answer in a manner not consistent with the example it will be counted incorrect and you will not receive the necessary points. Enter all answers carefully. Ex: Dr 10000$5,000.00Cr40000 $5,000,00. (Note that the cents in all dollar amounts are included and that there are no periods after Dr or Cr ) Example of Production Report Dynamic Drones, Inc. Cost of Production Report For the year ended December 31, 2023 III tne cost or rroauction keport ror costs Transferred to Finished Goods and the WIP Process T-Account Comparative Balance Sheet \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Drnamic Drones } \\ \hline \multicolumn{5}{|c|}{ Comparatwe Balance Sheet } \\ \hline \multicolumn{5}{|c|}{ Decermber 31,2023 and 2022} \\ \hline Assets & & 2023 & \multicolumn{2}{|c|}{2022} \\ \hline \multicolumn{3}{|l|}{ Current Assets: } & & \\ \hline Cash & s & 60,000 & & 80,000 \\ \hline Accounts Receivable, Net & s & 140,000 & $ & 100,000 \\ \hline Merchandise Inventory & $ & 110.000 & $ & 70,000 \\ \hline Prepaid Rent & $ & 20,000 & s & 10,000 \\ \hline Totol Current Assets & s & 330,000 & 5 & 260.000 \\ \hline \multicolumn{5}{|l|}{ Property, Plant, and Equipment: } \\ \hline Equipment & s & 400.000 & S & 191,000 \\ \hline Less: Accumulated Depreciation - Equipment & $ & (60,000) & s & (42,400) \\ \hline Total Property. Plant and Fquipment & $ & 340,000 & 5 & 148,600 \\ \hline Total Assets & $ & 670,000 & $ & 408,600 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multirow{2}{*}{\begin{tabular}{l} Liabilities and Stockholders' Equity \\ Current Liabilities: \end{tabular}} & \multicolumn{2}{|c|}{2023} & \multicolumn{2}{|c|}{2022} \\ \hline & & & & \\ \hline Accounts Payable & 5 & 150,000 & $ & 40,000 \\ \hline Unearned Revenue & $ & 40.000 & $ & 50.000 \\ \hline Salaries Payable & $ & 40,000 & s & 30,000 \\ \hline Federal Income Taxes Payable & $ & 10.000 & 5 & 10,000 \\ \hline Total Current Liabilities. & s & 240,000 & $ & 130.000 \\ \hline \multicolumn{5}{|l|}{ Long. Term tiabilities } \\ \hline \multirow{2}{*}{\begin{tabular}{l} Note Parable \\ Total Uabilities \end{tabular}} & 5 & 50.000 & & \\ \hline & $ & 290,000 & $ & 130,000 \\ \hline \multicolumn{5}{|l|}{\begin{tabular}{l} Stockholders' Equity \\ Common Stock $10 Par \end{tabular}} \\ \hline \begin{tabular}{l} Cormmon Stock, $10 Par \\ Paid-In Capital in Excess of Par \end{tabular} & 5 & 150,000 & $ & 98,600 \\ \hline Paid-In Capital in Excess of Par & & 20,000 & $ & . \\ \hline \begin{tabular}{|l|l|} Retained Earnings \\ \end{tabular} & $ & 210,000 & s & 180,000 \\ \hline \multirow{2}{*}{\begin{tabular}{l} Totol Scockholders' Equily \\ Total Libilities and Stockholders' Equity \end{tabular}} & $ & 380,000 & $ & 278,600 \\ \hline & $ & 670,000 & $ & 403,600 \\ \hline \end{tabular} 4 lpage Comparative Income Statement