Manufacturing Process Information

Slam, Dunk, Score, Inc. started a small manufacturing plant that manufactures mini sport balls with logos printed on them. The manufacturing process starts by pouring the plastic pellets into molds, melting and forming the balls and then printing the logo onto the balls after they are formed. The printing of the logo will be the last step in the production process. The resulting balls are then sent to quality control and if the inspection is approved, they are transferred to finished goods. This process is completely automated.

Direct material, Plastic Pellets, is added $100\%$ at the beginning of the process.

Direct material ink, for the logo$,$ is added $100\%$ at the end of the process.

Conversion costs are added equally throughout the process. Conversion is $40\%$ complete for the beginning inventory work in process and $60\%$ complete for the ending inventory work in process.

At the beginning of the accounting period, Slam, Dunk, Score, Inc. started $150,000$ units. The predetermined factory overhead rate is based on an estimated FOH cost of $$7,500.$ Overhead is applied to production based on direct labor hours. This information is to be used to determine the application rate for overhead.

Estimated and actual direct labor costs totaled $$7,300$ which is calculated at $$7\mathrm{.}30$ per hour.

Actual factory overhead costs totaled $$1,050,000.$

Beginning Work$-$in$-$Process costs totaled $$0$ since this is the first month of production.

The following information is available concerning direct materials.

Direct Materials$-$Plastic

Beginning inventory

Purchase of Plastic Pellets

Ending Inventory

One pound of plastic makes $100$ balls

$0$ plastic pellets @ $$11\mathrm{.}00$ per pound

$1,700$ pounds @ $$11\mathrm{.}00$ per pound

$200$ pounds @ $$11\mathrm{.}00$ per pound

Direct Material$-$Ink

Beginning inventory

Purchases of Ink

Ending inventory

One cartridge will print $100$ balls

$0$ ink cartridges @ $$20\mathrm{.}00$ per cartridge

$1,700$ cartridges @ $$20\mathrm{.}00$ per cartridge $300$ cartridges @ $$20\mathrm{.}00$ per cartridge

The Work$-$in$-$Process account has the following information

Beginning Work$-$in$-$Process contains $0$ equivalent units

Ending Work$-$in$-$Process contains $10,000$ equivalent units

$10$