Question 3: Process Costing Cannondale Bicycle Company manufactures various lines of bicycles. Because of the high volume of each type of product, the company employs a process cost system to determine unit costs. Bicycle parts are manufactured in the Moulding Department and transferred to the Assembly Department where they are assembled. After assembly, the bicycles are sent to the Packing Department. Cost and production figures for the Assembly Department are presented below for the month of June: Production Data (in unit Beginning WIP Inventory (70% complete as to material; 70,000 40% complete as to conversion) Started in June 460,000 Completed and transferred out 450,000 Ending WIP Inventory (75% complete as to material; 25% 80,000 complete as to conversion) Cost Data (in dollar Material Conversion Beginning WIP Inventory $36,550 $13,500 Current period $391,850 $287,300 Required: (a) Determine the cost per equivalent unit for the Assembly Department's direct materials and conversion costs, and the total unit cost for the current period, under the i. Weighted-Average method ii. FIFO method (b) Assign total costs to units completed (and transferred out) to Packaging Department and to units in ending work in process in the Assembly Department.Question 4: Cost Volume and Profit (CVP) Analysis Bellroy Company makes protective cases for iPhone 11 Pro Max. The company has three product lines - Polycarbonate (PC) cases, Silicone (S) cases and Thermoplastic Polyurethane (TPU) case. The following table presents the sales and cost data of the business. PC case S case TPU Case Selling Price per unit 50 65 90 Variable Cost Per unit 45 61 87 Company's total fixed cost 35,100 After analysing the market trend, the management accountant of Bellroy Company expects that the company will be able to sell 17,500 cases in next month consisting, 2,500 units of PC case, 10,000 units of S case and 5,000 units of TPU case. Required: (a) If the given sales mix is maintained, what is Bellroy company's break-even point in units? (b) Assuming that the given sales mix is maintained, what is the operating profit when 17,500 units are sold? (c) If the company sold 2,500 units of PC case, 7,500 units of S case and 7,500 units of TPU case, what would be the operating income? What would be the new break-even point in units if these new relationships persist in the next period? (d) The CEO of the Bellroy Company reviewed the break-event points calculated the requirement (a) and (c). After careful observation, she commented "It is always better for a company to choose the sales mix that yields the lower break-even point". Do you agree with the CEO's comment? Explain your