Please see attached for Question 1-5.

Question 1: Sasita has researched and decided to produce and sell surfboards. For start-up costs she will use the $ 10,000 she currently has invested in a money-market account earnng interest at a rate of 6% annually. She has a garage that was constructed at a cost of $ 4,000 several years ago that will be used for production purposes. The garage will be depreciated over a 10-year life. Sasita had determined that each surfboard will require $30 in materials. She will hire students to do most of the work and pay $35 for each surfboard completed. She will rent machinery needed at a cost of $200 per month. An ad agency will handle advertising at a cost of $100 per month. Sasita will hire students to sell the surfboards and pay a commission of $20 per board. From the above information, identify all of the following types of costs :- a) Period Costs b) Flexible Costs 0) Product Costs d) Direct Manufacturing Costs e) Indirect manufacturing Costs f) Opportunity Costs of starting the Sasita's Surboard Company h) Which costs should be considered over the long run ? Question 2: Schedule of Cost of Goods Manufactured; Income Statement Veekay Company was organized on November 1 of the previous year. After seven months of start-up losses, management had expected to earn a profit during June, the most recent month. Management was disappointed, however, when the income statement for June also showed a loss. June's income statement follows: VEEKAY COMPANY Income Statement For the Month Ended June 30 Sales $660,000 Less operating expenses: Selling and administrative salaries $ 39,000 Rent on facilities 40,000 Purchases of raw materials 209,000 Insurance 10,000 Depreciation, sales equipment 11,000 Utilities costs 55,000 Indirect labour 1 19,000 Direct labour 99,000 Depreciation, factory equipment 13,000 Maintenance, factory 8,000 Advertising 88,000 691,000 Operating loss $(31,000) After seeing the $31,000 loss for June, Veekay's president stated, "I was sure we'd be profitable within six months, but after eight months we're still spilling red ink. Maybe it's time for us to throw in the towel. To make matters worse, I just heard that Debbie won't be back from her surgery for at least six more weeks."Debbie is the company\"s controller; in her absence, the statement above was prepared by a new assistant who has had little experience in manufacturing operations. Additional information about the company follows: a. Only 85% of the rent on facilities applies to factory operations; the remainder applies to selling and administrative activities. b. Inventory balances at the beginning and end of June were as follows: June 1 June 30 Raw materials $19,000 $46,000 Work in process 77,000 94,000 Finished goods 22,000 66,000 0. Some 90% of the insurance and 80% of the utilities cost apply to factory operations; the remaining amounts apply to selling and administrative activities. The president has asked you to check over the above income statement and recommend whether the company should continue operations. Required: 1. As one step in gathering data for a recommendation to the president, prepare a schedule of cost of goods manufactured for June. 2. As a second step, prepare a new income statement for the month. 3. Based on your statements prepared in (1) and (2) above, would you recommend that the company continue operations? Question 3: Cost Function Normal Auto Repair Inc. provides repair services for all types of vehicles. The repair shop costs include the labour hours for the repair staff; the cost of materials, parts, and supplies; the shop utilities; depreciation of equipment and tools; and the rent on the shop. This is Nonnan's rst year of business. The company's controller is interested in developing a cost function to predict the repair shop costs each month and has collected the following data from the past year on the number of repair jobs and the repair shop costs each month: Month # of jobs Repair shop costs January 150 $27,500 February 120 $22,000 March 125 $21,800 April 160 $30,000 May 200 $36,250 June 240 $39,500 July 250 $42,300 August 210 $37,000 September 195 $36,500 October 175 $32,700 November 160 $28,950 December 155 $28,120 Required: 1. Using the high-10w method, estimate a co st function for repair shop costs. 2. Assume that the company controller is attempting to estimate the repair shop costs for February of the next year and has estimated that there will be 135 jobs. What is the estimated repair shop cost, using the formula developed in part a)? 3. The controller has just learned that the company's biggest competitor is going out of business, and it is sending all its customers to Norman's Repair. The controller estimates that the total jobs for the next month will be 410. Should the controller use the formula developed in part a) to estimate the repair shop cost? Explain. 4. The controller performed a regression analysis using the number of jobs and accompanying costs. The analysis produced the following summary output: Interpret the results of this analysis. What is the cost function for repair shop costs using the output from the regression analysis? Regression Statistics Multiple R 0.982981363 R Square 0.96625236 Adjusted R Square 0.962877596 Standard Error 1270.931021 Observations 12 Coefficients Standard Error t Stat Intercept 4037.732865 1686.131041 2.394673 X Variable 1 156.1528998 9.228401352 16.9209 Assume, again, that 135 jobs are estimated for February. What would be the estimated repair shop costs for February, using the new regression analysis?Question 4: Job Costing Tycol Inc. assigns costs to its products using a job order costing system. The company assembles and packages 30 different juice products based on individual customer orders. Each order has a distinct job number. On April 1, the company had the following amounts in inventory: Direct materials $ 11,700 Work-in-process $ 68,589 Finished goods $ 35,280 Included in the work-in-process account are the following jobs: Apple Blueberry Cranberry Direct materials $ 6,300 $ 4,785 $ 4,200 Direct labour 12,750 10,815 9,750 Overhead applied 7,650 6,489 5,850 Total $26,700 $22,089 $19,800 Included in the nished goods account are the following costs: Dragonfruit Direct materials $10,800 Direct labour 15,300 Overhead applied 9,180 Total $35,280 The data for jobs started during the month of April are as follows: Strawberry Fig Grapefruit Direct materials $ 6,270 $ 5,400 $1,800 Direct labour 13,800 12,510 4,365 The following were added to existing jobs during April: Apple Blueberry Cranberry Direct materials $1,425 33 615 $1,800 Direct labour 3,000 5,250 6,750 Actual overhead expenses for April were as follows: Supervisory salaries $ 6,000 Factory rent 3,000 Machine depreciation 4,500 Indirect labour 7,500 Factory supplies 1,650 Selling expenses 12,750 Factory employee benefits 3,840 Additional information: Overhead is applied based on direct labour cost. . Direct materials purchased during April totalled $12, 750. . Only Jobs Fig and Grapefruit are in work-in-process at the end of April, and only Job Cramberry is in finished goods. . Under- or overapplied overhead is written off to cost of goods sold at month end. Required: 1. What is the total cost of Job Blueberry? 2. What are the April 30 balances for direct materials, work-in-process, and finished goods inventory? 3. What is the cost of goods manufactured in April? 4. What is the over- or underapplied overhead for April?Question 5 Process Costing Scarborough Manufacturing is a fumiture manufacturer with two departments : moulding and nishing. The company uses the weighted average method of process costing. In August the following data were recorded for the nishing department: Units of beginning work in process inventory 12,500 Percentage completion of beginning work in process units 25% Cost of direct materials in beginning work in process 33 0 Units started 87,500 Units completed 62,500 Units in ending inventory 25,000 Percentage completion of ending work in process units 95% Spoiled units 12,500 Total costs added during current period: Direct materials $ 819,000 Direct manufacturing labour $ 794,500 Manufacturing overhead $ 770,000 Work in process Beginning: Transferred In costs $ 103,625 Conversion costs $ 52,500 Cost of units transferred in during current period $ 809,3 75 Conversion costs are added evenly during the process. Direct materials are added when production is 90% complete. The inspection point is 80% stage of production, Normal spoilage is 10% of all goof units that pass inspection. Spoiled units are disposed of zero net disposal value. Required: For August, summarize total costs to account for, and assign these costs to units completed and transferred put (including normal spoilage), to abnormal spoilage, and to units in ending work in process