1. The following information was taken from the records of the Demi Corporation for the month of June: Work In Process, beginning - 7,500 units, 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?

2. 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.