Littlejohn, Inc., produces a subassembly used in the production of hydraulic cylinders. The subassemblies are produced in three departments: rod cutting, plate cutting, and welding. 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 ............. 370,000
Direct materials cost ..........$1,850,000
Units, ending work in process
(100% materials; 80% conversion) ..... 20,000
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 endinginventory

Transcribed Image Text:

Driver Rate Actual Usage (by Plate Cutting) Direct labor cost Inspection hours Purchase orders 150% of direct labor cost $20 per hour $500 per order S366,000 3,725 houns 400 orders