(2) KAMALA currently sells Sushi. During a typical month, KAMALA reports a profit of $9,000 with sales of $50,000, fixed costs of $40,000, and variable costs of $0.5 per Sushi. The company plans to start selling tacos for $3 per unit. Tacos will have a variable cost of $0.72 and new equipment and personnel to produce tacos will increase monthly fixed costs by $8,007. Initial sales of tacos should total 5,000 units. Most of the taco sales are anticipated to come from current Sushi purchasers, therefore, monthly sales of Sushi are expected to decline to $20,000. After the first year of taco sales, KAMALA believes that Sushi sales will increase to $33,750 a month and taco sales will increase to 7,500 units a month. KAMALA expects a constant sales mix of 1 Sushi and 2 units of tacos. How many Sushi and taco should be sold monthly during the first year of taco sales in order to breakeven?

2. Taipei Company produces closets in two departments: molding and finishing. The company uses the weighted-average method of process costing. August data for the finishing department are as follows: | Units of beginning work-in-process inventory | 25,000 | | --- | --- | | Percentage completion of beginning work-in-process units | 25% | | Units started | 175,000 | | --- | --- | | Units completed | 125,000 | | Units in ending inventory | 50,000 | | Percentage completion of ending work-in-process units | 95% | | Spoiled units | 25,000 | | Total costs added during current period: | | | --- | --- | | Direct materials | $1,638,000 | | Direct manufacturing labor | $1,589,000 | | Manufacturing overhead | $1,540,000 | | Work in process, beginning: | | | Transferred-in costs | $207,250 | | Conversion costs | $105,000 | | Cost of units transferred in during current period | $1,618,750 | Conversion costs are added evenly during the process. Direct material costs are added when production is 90% complete. The inspection point is at the 80% stage of production. Normal spoilage is 10% of all good units that pass inspection. Spoiled units are disposed of at zero net disposal value. Required: (15%) (1) Prepare a production cost worksheet that summarizes total costs to account for and assign these costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process inventory for August.

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