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The Ball Company specializes in making toy rockets. The direct materials are added at the beginning of the process. The conversion costs are added evenly
The Ball Company specializes in making toy rockets. The direct materials are added at the beginning of the process. The conversion costs are added evenly during the process. The spoiled units are not detectable till the inspection point at the end of the process. Normally, the spoiled units are 15% of good units which completed the process and were transferred out. Spoiled units have a zero net disposal value. The Ball Company uses the first-in first-out method. Below is the summary data for this month: PHYSICAL DIRECT CONVERSION BEGINNING WIP \begin{tabular}{rrr|} \hline UNITS & MATERIALS & \multicolumn{1}{c}{ COSTS } \\ \hline 400 & $76 , 800 & $12 , 240 \\ & 100% & 30% \\ \hline \end{tabular} 1,700 GOOD UNITS TRANSFERRED OUT ENDING WIP 1,400 DEGREE OF COMPLETION FOR END WIP COSTS ADDED DURING THE PERIOD $453 , 600$184 , 320
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