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1)Ergodesign Company manufactures premium working desks for offices and has a renowned reputation for producing a high quality product at a reasonable price

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1)Ergodesign Company manufactures premium working desks for offices and has a renowned reputation for producing a high quality product at a reasonable price. The working desks are usually made of wood or metal, although materials such as glass are sometimes seen. Furthermore, the manufactured working desk parts (e.g. compartments, drawers, pigeonholes) with varying option allow customization to fulfil the needs of the customer. Ergodesign budgeted manufacturing overhead costs for the year 2019 as on the table below: No. Overhead Cost Pools Amount 1 Procurement 585,000.00 2 Materials handling $92,000.00 3 Inventory Control (raw materials & finished goods) $136,000.00 Machines setup $115,000.00 5 Production (measuring, cutting, assembling, finishing) $220,000.00 6 Inspecting and checking $100,000.00 7 Utilities $190,000.00 8 Total budgeted overhead costs $938,000.00 4 Comments In the last two years, Ergodesign has been assigning overhead costs to the product on the basis of machine hours. In this year (2019), Ergodesign budgeted 100,000 machine hours in order to meet customer demand Other than that, the CEO of Ergodesign instructed the CFO to use the activity-based costing system. The CFO recognised the following cost drivers including the expected use of each cost drivers based on the earlier budgeted overhead cost pools No 1 2. Expected Use of Cost Drivers 700 8,100 3 Overhead Cost Pools Cost Drivers Procurement Number of orders Materials handling Number of moves Inventory Control (raw materials & finished goods) Number of components Machines setup Number of setups Production (measuring cutting, assembling, finishing Direct labor hours Inspecting and check ng Number of inspections Utilities Square meter occupied 178,000 1,300 5 6 110,000 7,000 100.000 7
5 6 cutting, assembling, finishing) Direct labor hours Inspecting and checking Number of inspections Utilities Square meter occupied 110,000 7,000 100,000 7 The CMO has received a request for proposal (RFP) from a state-owned enterprise (SOE) for manufacturing 300 working desks. Therefore, the CFO needs to determine the costs of producing 300 working desks in order to submit a bid price per working desks to the state-owned enteprise. The CFO gathers the following data for the production of 300 working desks. No. 1 2 3 4 Description Direct materials (DM) Direct labor (DL) Direct labor hours Machine hours Number of purchase orders Number of material moves Number of machine setups Number of inspections and I checks Number of components Amount $113,600.00 $122,000.00 6000 15500 70 900 5 6 7 200 8 550 17000 9 Number of square meters Occupied 10 9000
10 Number of square meters occupied 9000 Instructions Calculate the predetermined overhead rate using traditional costing system with the basis of machine hours (round the final answer to two decimal places) 2 3 Determine the manufacturing cost per working desk under traditional costing system (round intermediate calculations to zero decimal & round final answer to two decimal places). Determine the manufacturing cost per working desk under activity-based costing (ABC) system and prepare the necessary schedules I Choose and explain of the two costing systems that are better for pricing decisions. Classify each of the activities as a value-added activity or a non-value-added activity. 

2)At the beginning of the current season on April 1, the ledger of Tamarisk, Inc. Shop showed Cash $1,900, Inventory $2,500, and Common Stock $4,400. The following transactions were completed during April 2022. Apr. 5 7 9 10 12 14 17 20 21 27 Purchased golf discs, bags, and other inventory on account from Arnie Co. $1,050, FOB shipping point, terms 2/10, n/60. Paid freight on the Arnie purchase $60. Received credit from Arnie Co. for merchandise returned $200. Sold merchandise on account for $930, terms n/30. The merchandise sold had a cost of $558. Purchased disc golf shirts and other accessories on account from Woods Sportswear $560, terms 1/10, 1/30. Paid Arnie Co. in full, less discount. Received credit from Woods Sportswear for merchandise returned $60. Made sales on account to members for $680 terms n/30. The cost of the merchandise sold was $350. Paid Woods Sportswear in full less discount Granted an allowance to members for clothing that did not fit $10. Received payments on account from members $860. 30 The chart of accounts for the store includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 inventory, No. 201 Accounts Payable, No. 311 Common Stock, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, and No. 505 Cost of Goods Sold
Enter the beginning balances in the ledger accounts and post the April transactions. (Post entries in the order of journal entries presented in the previous part.) Cash Debit No. 101 Balance Date Credit Explanation Ref. Balance ? J1 J1 J1 J1 Accounts Receivable Explanation Ref. Debit No. 112 Balance Credit Date 01 J1 J1 > J1 No. 120 Inventory
Inventory Debit No. 120 Balance Date Credit Explanation Ref. Balance ? I J1 J1 > 31 J1 C 31 J1 J1 J1 J1 No. 201 Balance Credit Date Accounts Payable Explanation Ref. Debit J1
Accounts Payable Explanation Ref. Debit No. 201 Balance Date Credit J1 J1 > J1 > J1 > J1 01 No. 311 Balance Date Credit Common Stock Explanation Ref. Debit Balance ? Sales Revenue Explanation Ref. Debit J1 No. 401 Balance Credit Date J1 Sales Returns and Allowances Fynlanation Ref. Debit No. 412 Balance Credit nato
31 No. 412 Balance Date Credit Sales Returns and Allowances Explanation Ref. Debit J1 I Cost of Goods Sold Explanation Ref. Debit No. 505 Balance Credit Date J1 J1