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 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 60% complete for the beginning inventory work in process and 40% complete for the ending inventory work in process At the beginning of the accounting period, Slam, Dunk, Score, Inc. estimated that production would be 150,000 units. Our predetermined factory overhead rate is based on an estimated FOH of $7,000. And overhead is applied to production on the basis of direct labor hours. This information is to be used to determine the application rate for overhead Estimated and actual direct labor costs totaled $10,000 which is calculated at $10.00 per hour Actual factory overhead costs totaled $7,400 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 0 plastic @ $11.00 per pound 1,700 pounds @ $11.00 per pound 200 pounds @ $11.00 per pound Ending Inventory One pound of plastic makes 100 balls Direct Material-Ink Beginning inventory Purchases of Ink Ending inventory 0 ink cartridges $20.00 per cartridge 1,700 cartridges @ $20.00 per cartridge 300 cartridges @ $20.00 per cartridge On cartridge will print 100 balls 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 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 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 60% complete for the beginning inventory work in process and 40% complete for the ending inventory work in process At the beginning of the accounting period, Slam, Dunk, Score, Inc. estimated that production would be 150,000 units. Our predetermined factory overhead rate is based on an estimated FOH of $7,000. And overhead is applied to production on the basis of direct labor hours. This information is to be used to determine the application rate for overhead Estimated and actual direct labor costs totaled $10,000 which is calculated at $10.00 per hour Actual factory overhead costs totaled $7,400 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 0 plastic @ $11.00 per pound 1,700 pounds @ $11.00 per pound 200 pounds @ $11.00 per pound Ending Inventory One pound of plastic makes 100 balls Direct Material-Ink Beginning inventory Purchases of Ink Ending inventory 0 ink cartridges $20.00 per cartridge 1,700 cartridges @ $20.00 per cartridge 300 cartridges @ $20.00 per cartridge On cartridge will print 100 balls 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
