Manufacturing Process Information

Dan started a small manufacturing plant that fabricates small drones. The manufacturing process starts with the aluminum pellets being put into a molding machine. After the drone's frame is shaped in the mold, the frame is cooled and inspected. If the drone passes inspection, the motor and propellers are added the end and they are transferred to finished goods after inspection. This process is completely automated.

Direct material aluminum is added $100\%$ at the beginning of the process; direct material motors and propellers are added $100\%$ as the last step in the process.

Conversion costs are added equally throughout the process. Conversion is $55\%$ complete for the beginning inventory work in process and $45\%$ complete for the ending inventory work in process.

At the beginning of the accounting period, Dan estimates that $15,200$ drones will be produced. Estimated factory overhead is $$3,800.$ This information is to be used to determine the application rate for overhead.

Estimated and actual direct labor costs totaled $$1,954\mathrm{.}55.$ Actual factory overhead costs totaled $$3,900.$ Selling and Administrative Expenses totaled $$100,000.$

The following information is available concerning the direct materials.

Direct Materials$-$Aluminum

Beginning inventory $0$ pellets @ $$2\mathrm{.}28$ a pound

Purchase of aluminum $,4,000$ pounds of pellets @$$2\mathrm{.}28$ a pound

Ending Inventory $200$ pounds of pellets @ $$2\mathrm{.}28$ a pound

One pound of aluminum makes $4$ drones

Direct Materials$-$Propellers $($there are four propellers for each drone$)$

Beginning inventory

Purchase of propellers

Ending Propellers

Direct Materials$-$Motor

Beginning inventory motors

Purchase of motors

Ending motors

$0$ propellers@$$0\mathrm{.}10$ a propeller $60,800$ propellers@$$0\mathrm{.}10$ a propeller $300$ propellers@$$0\mathrm{.}10$ a propeller

$0$ motors@$$1\mathrm{.}00$ a drone $15,200$ motors@$$1\mathrm{.}00$ a drone $300$ motors@$$1\mathrm{.}00$ a drone

The work in process account has the following information Beginning Work in Process contains $0$ drones

Ending work in process contains $300$ drones

Beginning Finished Goods contains $0$ drones $12,000$ drones were sold at $$39$ each

Tax Rate is $35\%$