QUESTION # 3 Selected data concerning the past years operations of the Beachwear Manufacturing Company are as follows: Inventories ($) Beginning Ending Raw materials 86,000 91,000 Work in Process 90,000 40,000 Finished Goods 110,000 120,000 Other Data: Direct Materials Used ---------------------------------------------- $ 416,000 Total Manufacturing Costs Charged to production during the year (includes direct material, direct labour, and manufacturing overhead applied at a rate of 60% of direct-labour cost) ----------------------------------$ 718,000 Cost of Goods Available for Sale ----------------------------------$ 816,000 Selling and Administration Expenses ----------------------------- $ 32,500 Required: a) What was the cost of raw materials purchased during the year? (5 marks) b) What was the direct-labour cost charged to production during the year? (5 marks) c) What was the cost of goods manufactured during the year? (5 marks) d) What was the cost of goods sold during the year? (5 marks) QUESTION # 4 Elmoe has the following information for the month of October, its first month of operations: Costs added in October Required a) Determine the equivalent units of production for October. (4 marks) b) Determine the cost of the ending work-in-process. (6 marks) c) Determine the cost of goods completed. (6 marks) d) What is meant by the term equivalent full units? (4 marks) QUESTION # 5 Beauty Supplies Company manufactures and sells several ranges of artwork. The average revenue and cost of sales are as follows: Selling price per unit $30.00 Variable costs per unit: Direct materials $7.00 Direct manufacturing labor $2.40 Manufacturing overhead $0.60 Selling costs $3.00 Annual fixed costs $108,000 a) Calculate the contribution margin per unit. (2 marks) b) Calculate the number of units Beauty Supplies Company must sell each year to break even. (4 marks) c) Calculate the number of units Beauty Supplies Company must sell to yield a profit of $160,000. (6 marks) d) Managers may use Sensitivity analysis in their accounting system. i) What is sensitivity analysis? (4 marks) ii) How is Sensitivity analysis useful to managers? (4 marks)