Question: Lacy Inc produces a subassembly used in the production of

Lacy, Inc., produces a subassembly used in the production of hydraulic cylinders. The subassemblies are produced in three departments: Plate Cutting, Rod Cutting, and Welding. Materials are added at the beginning of the process. Overhead is applied using the following drivers and activity rates:
Other data for the Plate Cutting Department are as follows:
Beginning work in process —
Units started .......... 750,000
Direct materials cost ........ $6,000,000
Units, ending work in process (100%
materials; 64% conversion)
Required:
1. Prepare a physical flow schedule.
2. Calculate equivalent units of production for:
a. Direct materials
b. Conversion costs
3. Calculate unit costs for:
a. Direct materials
b. Conversion costs
c. Total manufacturing
4. Provide the following information:
a. The total cost of units transferred out
b. The journal entry for transferring costs from Plate Cutting to Welding
c. The cost assigned to units in ending inventory



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  • CreatedSeptember 01, 2015
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