Please do Part a) & b) PLEASE ensure the pictures/working are NOT blurry.

Like most other companies. your organization, Appliance Manufacturers Limited, has been severely affected by the global pandemic. Management has decided to take a critical review of its operations to effectively plan a way forward. As the Management Accountant of the company, you have been asked to prepare some reports for the next Board meeting to assist Management in their task. The company presently has two main production lines, producing Refrigerators and Stoves. Management has identified three main areas of the operations from which they would like specific reports. These are as follows: A) Manufacturing Costs 30 Marks Management was very concerned that their traditional method of costing may no longer be appropriate and wanted to consider using the ABC costing method. It has been suggested that three Cost poolis be established, with the following cost Drivers, and the Overhead cost be shared among them as follows: Cost Pool Amount Cost Driver Assembling Manufacturing Inspecting $50,000 $ 54,000 $ 16.000 Labour cost Labour Hours Number Inspections of In the month of January, the following production data was recorded: Refrigerators Stoves Units produced Direct Materials Used Direct Labour Cost Direct Labour Hours Number of Inspections Work in Progress at the start of the month Work in Progress at the end of the month 15.000 $ 75,000 $ 40,000 12.000 300 $ 12.500 25,000 $ 125,000 $72.000 15.000 500 $ 14,000 $7,500 $ 12,000 Manufacturing Overheads for the month amounted to s 120,000 and this was allocated equally between the two products, using the traditional approach. You were asked to: a) Prepare a report showing the manufacturing cost of each Refrigerator and each Stove. 10 Marks b) Prepare a cost of production report using the ABC approach. 20 Marks