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2250 Winter 2020 a) The Jackpots Dreams Cards Company is a card manufacturer. All direct materials are added at the beginning of production in the

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2250 Winter 2020 a) The Jackpots Dreams Cards Company is a card manufacturer. All direct materials are added at the beginning of production in the Finishing Department. Conversion costs are applied to all of Proball Trading Cards' products at an even rate throughout the manufacturing process. For August, the beginning work in process inventory for the Finishing Department was 9,600 units that averaged 65 percent complete. Ending work in process inventory was 18,500 units averaging 45 percent complete. Production data shows 188,400 units were started during the period. Beginning work in process inventory costs totaled $11,232 including $7,296 for conversion costs. For the month of August, additional costs totaling $75,264 for direct materials and $111.034 for conversion costs were added in the production department during the period. 1) Prepare in good form a process report. 2) Prepare the journal entry to move costs to finished goods. 3) Prepare any journal entry, if required, for costs remaining in WIP. b) Dub's Records Stuff estimates its sales for the upcoming period and prepared the following budget: Units 25,000 Sales $20 Less variable costs: Less variable costs: Manufacturing costs Selling and administrative costs Contribution margin Less fixed costs: Manufacturing costs $14,000 Selling and administrative costs $12,000 Net income TBD Assuming the manager produced 190K in sales, 110K of total variable costs and 14K for total fixed costs for 15,000 units. Of these variable costs, 40K related to selling and administrative costs. Comment if these are favourable or unfavourable. Make sure to use full dollar impacts so it is clear to management the magnitude of any variances. Comment on if the manager has had a successful year. 1) The flex budget method (Give full values vs. per unit) 2) The static budget method (Give full budget vs. per unit)

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