ACCOUNT-Daniel LLC incurred the following costs in the month of October

Problem 1

Daniel
LLC incurred the following costs in the month of October:

Material $55,000

Labor $46,000

Factory
Overhead $23,000

There was no beginning inventory. Ending work in process was 10,000 units at 50
percent complete. 15,000 units were
completed and transferred out.

Prepare a cost of production summary for the month.

Problem 2

Information for Tyson Company in May for
Department One, the first stage of the production cycle, is as follows:

	Materials	Conversion Costs
Beginning work in process	$ 7,500	$ 6,000
Costs added during May	28,500	16,050
Total costs	$36,000	$22,050
Equivalent units based on average cost
method	10,000	9,800
Goods completed		9,000 units
Ending work in process		1,000 units

Material costs are added at the beginning of the
process. The ending work in process is
80 percent complete as to conversion costs.
How would the total costs accounted for be distributed using the average
cost method?

Problem 3

Howard Poster
Incorporated had 12,000 units of work in process in Department A on October
1. These units were 60 percent complete
as to conversion costs. Materials are
added in the beginning of the process.
During the month of October, 38,000 units were started and 40,000 units
were completed. Howard had 10,000 units
of work in process on October 31. These
units were 75 percent complete as to conversion costs.

1) Compute the
equivalent units for materials and conversion costs for the month of October
using the FIFO method.

Problem 4

Phelps
Company manufactures one product that requires 3 hours of machining direct
labor and 2 hours of assembly direct labor.
The standard labor rate is $18.00 per direct labor hour in the Machining
Department and $15.00 per direct labor hour in the Assembly Department. The product has forecasted sales of 2,000
units in May. The estimated finished
goods inventory at May 1 is 250 units and the desired ending inventory at May
31 is 450 units.

(1) Prepare a production budget for the month of
May.

(2) Prepare a direct labor budget for the month
of May.

Problem 5

Keefe Clothing, Inc. manufactures two styles
of blue jeans: standard, which sell for
$35, and deluxe, which sell for $50. The
jeans are sold in three regions: East,
West and South. Deluxe jeans account for
25% of the sales in the East Region, 30% in the West Region and 20% in the
South Region. Forecasted total sales in
2008 are 30,000, 50,000 and 35,000 in the East, West and South Regions, respectively.

Prepare a sales
budget for Keefe Clothing, Inc. for 2008.

Problem 6

The
following information is from Franklin Industries master budget for 2008:

Number of units	15,000
Sales revenue	$585,000
Direct materials	165,000
Direct labor	90,000
Variable factory overhead	120,000
Fixed factory overhead	75,000
Variable selling and administrative expenses	60,000
Fixed selling and administrative expenses	20,000

Prepare flexible
budgets for the production and sale of 14,000, 15,000 and 16,000 units,
respectively.