Question 1 Burford Ball Company (BBC) manufactures soccer balls, which sell for $30 each and have a direct materials cost of $12 each. BBC's production manager is considering acquiring a new computer-controlled sewing machine that sews together the 32 panels comprising the ball. The current cost per ball to sew the panels together is $5.50 and reects the wage paid to a worker operating a manually controlled machine. The computer-controlled machine would reduce the cost to $4 per ball by reducing the required operator time. The manufacturer of the new machine has offered to rent the machine to BBC for $75,000 per year. Required: a) What volume of annual production is required to make this machine cost-effective to BBC? b) If BBC produces and sells 30,000 soccer balls, by how much should the selling price of each soccer ball increase if BBC purchases the machine? Question 2 Bahadur Co. manufactures plumbing supplies. The following data were collected from the accounting records for the past year: 1. Beginning direct materials inventory as 45,000 2. Beginning work-in-process inventory $ 58,500 3. Beginning nished goods inventory $175,600 4. Direct materials purchased $756,000 5. President's salary $150,000 6. Head ofce salaries $650,000 7. Wages paid to direct labour $456,000 8. Wages paid to factory supervisors $234,000 9. Wages paid to indirect labour $ 23,450 10. Advertising and marketing expenses $356,000 11. Electricity used in plant $130,000 12. Overhead supplies used in plant $ 23,500 13. Wages paid to marketing manager $125,000 14. Fuel purchased for delivery trucks 3; 35,600 15. Oil to heat factory $ 67,000 16. Depreciation on factory equipment $ 86,000 17. Property taxes for factory $ 32,000 16. Rent paid for head ofce equipment $ 75,000 19. Rent paid for factory equipment $ 34,000 20. Ending direct materials inventory $ 24,500 21. Ending work-in-process inventory $102,000 22. Ending nished goods inventory $164,300 Required: a) Prepare a schedule of costs of goods manufactured for this year. b) Compute the total prime costs for this year. c) Compute the total conversion costs for this year. 6]) Prepare a statement Of cost Of QOOGS SOld for this year