Exercise 6.14 Physical Flow, Equivalent Units, Unit Costs, No Beginning WIP Inventory, Activity-Based Costing Lacy, Inc., produces a subassembly used in the production of hydraulic cylinders. The subassem- blies 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 Actual Usage (by Plate Driver Rate Cutting) Direct labor cost 150% of direct labor $ 732,000 Inspection hours $40 per hour 7.450 hours Purchase orders $1,000 per order 800 orders Other data for the Plate Cutting Department are as follows: Beginning work in process Units started Direct materials cost Units, ending work in process (100% maternals: 64% conversion) 750,000 $6.000.000 50,000 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 ending inventory Exercise 615 Production Report No Roninis