The Business Situation Namaste Company manufactures a unique yoga mat. The company began operations December 1, 2018. Its accountant quit the second week of operations, and the company is searching for a replacement. The company has decided to test the knowledge and ability of all candidates interviewing for the position. Each candid ate will be provided with the information below and then asked to prepare a series of reports, schedules, budgets, and recommendations based on that information. The information provided to each candidate is as follows. Cost Items and Account Balances Administrative salaries $15,500 Advertising WW Cash, December 1 -0- Depreciation on factory building 1,500 Depreciation on office equipment 800 Insurance on factory building 1,500 Miscellaneous expensesfactory 1,000 Office supplies expense 300 Professional fees 500 Property taxes on factory building 400 Raw materials used Wm Rent on production equipment 6,000 Research and development WW Sales commissions WWW Utility costsfactory 900 Wisesfaw MW Work in process, December 1 0- Work in process, December 31 0- Raw materials inventory, December 1 -0- Raw materials inventory, December 31 -0- Raw material purchases Wm Finished goods inventory, December 1 0- Production and Sales Data Number of mats produced 10,000 Expected sales in units for December [540 unit sales price] WW Expected sales in units for January 10,000 Desired ending inventory 20% of next month's sales Direct materials per finished unit 1 kilogram Direct materials cost 5? per kilogram Direct labor hours per unit .35 Direct labor hourly rate $20 Cash Flow Data Cash collections from customers: ?5% in month of sale and 25% the following month. Cash payments to suppliers: 35% in month of purchase and 25% the following month. Income tax rate: 45%. Cost of proposed production equipment: $20,000. Manufacturing overhead and selling and administrative costs are paid as incurred. Desired ending cash balance: $30,000