The lamps are ceramic figurines of animals, boats, boys and girls playing and singing, all in delightful colors. The owner of the business, Big Al, creates a drawing for the figurine and faxes it to a plant in China where a mold is created and a sample produced and hand painted. If the mold meets the expectations of Big Al an order of 500 lamp parts is placed. Each lamp kit consists of the parts required to complete one lamp; a figurine, a lamp shade and the required electrical components. There are presently 10 different figurines that come in six different colors; 60 models.

There are presently 10 workers in the plant. They are responsible for receiving the raw material, manufacturing the product, packing and shipping. In addition to Big Al there are two office workers who are responsible for all administrative duties.

Big Al had his accountant prepare the Projected Income Statement and Balance Sheet presented on page two. Big Al heard about your skills in managerial accounting and would like your assistance in the following areas:

Part 1 Process Costing

Part 2 Job Order Costing

The I See The Light Company has a related company that produces the figurines. They use process costing in the molding department. The factory overhead is applied at a rate of 50% of direct labor dollars. The material is added at the beginning of the process. The labor and overhead costs are assumed to be added uniformly throughout. Month of January Selected information for January is presented below. Note that the applied overhead rate was 50% of direct labor costs in the molding department. Molding Department Goods in-process as of January 1 were 3,300 figurines at a cost of $57,255.00. Of this amount, $52,800.00 was from raw materials added, $2,970.00 for labor and $1,485.00 for overhead. These 3,300 figurines were assumed to be 50.00% complete as to labor and overhead. During January, 25,500 units were started, $412,335.00 of materials and $44,550.00 of labor costs were incurred. MDLDING Physical Flow of Units Work-in-Process - Beginning Lnits Started this Period Units to Account for Total transferred out Work-in-Process - Ending Total Accounted for \begin{tabular}{|l|l|l|l|l|} \hline & & & & \\ \hline & & \end{tabular} {12.09} {12.10} {12.11} \begin{tabular}{|l|l|l|l|l|} \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline Equivalent Units Conversion (Round to three places, ##_## \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & \\ \hline \end{tabular} {12.06} \begin{tabular}{|l|l|l|l|l|l|} \hline & & & & \\ \hline & & & & \\ \hline \multicolumn{2}{|l|}{ Cost per equivalent unit of Material this period (Round to seven places, ###.######) } \end{tabular} {12.08} {12.12} Cost of the units transferred, material and convesion [Round to two places, \$###,###.##] {12.14} Cost of the ending inventory, material and convesion [Round to two places, \$###,####.###) {12.13} Total Cost accounted for [Round to two places, \$###,###.##] {12.15} {12.16} The I See The Light Company has a related company that produces the figurines. They use process costing in the molding department. The factory overhead is applied at a rate of 50% of direct labor dollars. The material is added at the beginning of the process. The labor and overhead costs are assumed to be added uniformly throughout. Month of January Selected information for January is presented below. Note that the applied overhead rate was 50% of direct labor costs in the molding department. Molding Department Goods in-process as of January 1 were 3,300 figurines at a cost of $57,255.00. Of this amount, $52,800.00 was from raw materials added, $2,970.00 for labor and $1,485.00 for overhead. These 3,300 figurines were assumed to be 50.00% complete as to labor and overhead. During January, 25,500 units were started, $412,335.00 of materials and $44,550.00 of labor costs were incurred. MDLDING Physical Flow of Units Work-in-Process - Beginning Lnits Started this Period Units to Account for Total transferred out Work-in-Process - Ending Total Accounted for \begin{tabular}{|l|l|l|l|l|} \hline & & & & \\ \hline & & \end{tabular} {12.09} {12.10} {12.11} \begin{tabular}{|l|l|l|l|l|} \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline Equivalent Units Conversion (Round to three places, ##_## \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & \\ \hline \end{tabular} {12.06} \begin{tabular}{|l|l|l|l|l|l|} \hline & & & & \\ \hline & & & & \\ \hline \multicolumn{2}{|l|}{ Cost per equivalent unit of Material this period (Round to seven places, ###.######) } \end{tabular} {12.08} {12.12} Cost of the units transferred, material and convesion [Round to two places, \$###,###.##] {12.14} Cost of the ending inventory, material and convesion [Round to two places, \$###,####.###) {12.13} Total Cost accounted for [Round to two places, \$###,###.##] {12.15} {12.16}