please answer the below cases separately in excel sheet with steps

case 1

Ethics and the Manager, Understanding the Impact of Percentage Completion on Prot Weighted-Average Method (10 marks) Gary Stevens and Mary James are production managers in the Consumer Electronics Division of GeneralElectronics Company, which has several dozen plants scattered in locations throughout the world. Mary manages the plant located in Des Moines, Iowa, while Gary manages the plant in El Segundo, California Production managers are paid a salary and get an additional bonus equal to 5% of their base salary if the entire division meets or exceeds its target prots for the yearr The bonus is determined in March after the company's annual report has been prepared and issued to stockholders Shortly aer the beginning of the new year, Mary received a phone call from Gary that went like this: Gary: How's it going, Mary? Mary: Fine, Gary. How's it going with you? Gary: Great! I just got the preliminary prot gures for the division for last year and we are within $200,000 of making the year's target protsr All we have to do is pull a few strings, and we'll be over the top! Mary: What do you mean? Gary: Well, one thing that would be easy to change is your estimate of the percentage completion of your ending work in process inventories, Mary: I don't lmow if I can do that, Gary Those percentage completion gures are supplied by Tom Winthrop, my lead supervisor, who I have always trusted to provide us with good estimates. Besides, I have already sent the percentage completion gures to corporate headquarters Gary: You can always tell them there was a mistake Think about it, Mary. All of us managers are doing as much as we can to pull this bonus out of the hat, You may not want the bonus check, but the rest of us sure could use it The nal processing department in Mary's production facility began the year with no work in process inventories. During the year, 210,000 units were transferred in from the prior processing department and 200,000 units were completed and sold. Costs transferred in from the prior department totaled $39,375,000. No materials are added in the nal processing department. A total of $20,807,500 of conversion cost was incurred in the fmal processing department during the year. Required: 1, Tom Winthrop estimated that the units in ending inventory in the nal processing department were 30% complete with respect to the conversion costs of the nal processing department. If this estimate of the percentage completion is used, what would be the Cost of Goods Sold for the year? 2, Does Gary Stevens want the estimated percentage completion to be increased or decreased? Explain why, 3, What percentage completion would result in increasing reported net operating income by $200,000 over the net operating income that would be reported if the 30% gure were used? 4, Do you think Mary James should go along with the request to alter estimates of the percentage completion? Why or why not? Mixed Cost Analysis and the Relevant Range (10 marks) The Ramon Company is a manufacturerthat is interested in developing a cost formula to estimate the xed and variable components of its monthly manufacturing overhead costs. The company wishes to use machine-hours as its measure of activity and has gathered the data below for this year and last year: Last Year This Year Month Machine-Hours Overhead Costs Machine Hours Overhead Costs January 21,000 $84,000 21,000 $86,000 February 25,000 $99,000 24,000 $93,000 March 22,000 $89,500 23,000 $93,000 April 23,000 $90,000 22,000 $87,000 May 20,500 $81 ,500 20,000 $80,000 June 19,000 575,500 18,000 $76 ,500 July 14.000 $70,500 12,000 $67,500 August 10,000 $64,500 13,000 $71 ,000 September 12,000 $69,000 15.000 $73,500 October 17,000 $75,000 17,000 $72,500 November 16.000 571 ,500 15,000 $71 ,000 December 19,000 $78,000 18,000 $75,000 The company leases all of its manufacturing equipment. The lease arrangement calls for a at monthly fee up to 19.500 machinehours. If the machinehours used exceeds 19.500. then the fee becomes strictly variable with respect to the total number of machine- hours consumed during the month. Lease expense is a major element of overhead cost. Required: 1. Using the high- low method. estimate a manufacturing overhead cost formula. 2. Prepare a scattergraph using all of the data for the two-year period. Fit a straight line or lines to the plotted points using a ruler. Describe the cost behavior pattern revealed by your scattergraph plot. 3. Assume a least-squares regression analysis using all of the given data points estimated the total xed costs to be $40.102 and the variable costs to be $2.13 per machinehour. Do you have any concerns about the accuracy of the high-low estimates that you have computed or the least-squares regression estimates that have been provided? 4. Assume that the company consumes22,500 machinehours during a month. Using the high low method, estimate the total overhead cost that would be incurred at this level of activity. Be sure to consider only the data points contained in the relevant range of activity when performing your computations. 5. Comment on the accuracy of your high-low estimates assuming a least-squares regression analysis using only the data points in the relevant range of activity estimated the total fixed costs to be $10090 and the variable costs to be $3.53 per machine-hour. 2