Reference no: EM133068339
Questions -
Q1. The following information was taken from the records of the Demi Corporation for the month of June: Work In Process, beginning - 7,500 units, ¼ complete, $10,400; Work In Process, end - 4,500 units, 2/5 complete; Placed in process - 75,000 units; Transferred out - 74,000 units. During the month, the entity has used $198,708.75 worth of materials in production and spent $233,775 for conversion costs. Under the FIFO method, how much is the adjustment for lost units if the normal loss occurred at the end of processing?
Q2. Sama Company has 3 production departments: Key, Day, and Coy. It also has 2 service departments: Administration and Personnel. Administration costs are allocated based on value of assets employed, and Personnel costs are allocated based on number of employees. Assume that Administration provides more service to the other departments than does the Personnel Department.
|
Department
|
Direct Costs
|
Employees
|
Asset Value
|
|
Administration
|
1,800,000
|
50
|
900,000
|
|
Personnel
|
700,000
|
20
|
1,200,000
|
|
Key
|
1,400,000
|
30
|
600,000
|
|
Day
|
400,000
|
10
|
300,000
|
|
Coy
|
500,000
|
20
|
1,600,000
|
Under the direct method, how much is the the factory overhead rate of the Day department if it apply overhead based on direct labor hours and budgeted direct labor hours for the period total to 75,000 hours.