Exercise 6-14 Physical Flow, Equivalent Units, Unit Costs, No Beginning WIP Inventory, Activity-Based Costing, DBC OBJECTIVE 2 OBJECTIVE 3

McKay, 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: Driver Rate Actual Usage (by Plate Cutting) Direct labor cost 120% of direct labor $330,000 Inspection hours $40 per hour 4,002 hours Number of moves $100 per move 1,680 moves During the first quarter, the Plate Cutting Department used 20,000 hours (direct, indirect, and machine hours) to produce the quarters output. Other quarterly data for the Plate Cutting Department are as follows: Beginning work in process, January 1 Units started 90,000 Direct materials cost $720,000 Units, ending work in process (100% materials; 64% conversion), March 31 6,000 Required: Prepare a physical flow schedule. Calculate equivalent units of production for: Direct materials Conversion costs Calculate unit costs for: Direct materials Conversion costs Total manufacturing Provide the following Information: The total cost of units transferred out The journal entry for transferring costs from Plate Cutting to Welding The cost assigned to units in ending inventory Answer Check Figures: Suppose the plant manager asked the following questions: What is the actual cycle time for the conversion cost output for the plate subassembly (round to four decimal places)? What is the conversion cost rate for the first quarter, using total conversion costs and total time (round to the nearest cent)? What is the conversion cost per unit, using duration-based costing (round to the nearest cent)? According to production engineering, if efficiency were increased to an ideal level, then the cycle time should be 0.20 hours. If this were to occur, what would the cost per plate be? Answer Check Figures: Identify the data analytic types (descriptive, diagnostic, predictive, or prescriptive) that apply to parts a. through d. (see Exhibits 2.5 and 2.6, for a review of data analytic metrics). Note: More than one data analytic type might apply.

I need help on question 5, please.

Exercise 6-14 Physical Flow, Equivalent Units, Unit Costs, No Beginning WIP Inventory, Activity-Based Costing, DBC OBJECTIVE 2 McKay, 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: OBJECTIVE 3 Driver Rate Actual Usage (by Plate Cutting) Direct labor cost Inspection hours 120% of direct labor $40 per hour $ 330,000 4,002 hours Driver Rate Actual Usage (by Plate Cutting) Direct labor cost Inspection hours Number of moves 120% of direct labor $40 per hour $100 per move $ 330,000 4,002 hours 1,680 moves During the first quarter, the Plate Cutting Department used 20,000 hours (direct, indirect, and machine hours) to produce the quarter's output. Other quarterly data for the Plate Cutting Department are as follows: Beginning work in process, January 1 Units started Direct materials cost Units, ending work in process (100% materials; 64% conversion), March 31 90,000 $720,000 6,000 5. Suppose the plant manager asked the following questions: a. What is the actual cycle time for the conversion cost output for the plate subassembly (round to four decimal places)? b. What is the conversion cost rate for the first quarter, using total conversion costs and total time (round to the nearest cent)? c. What is the conversion cost per unit, using duration-based costing (round to the nearest cent)? d. According to production engineering, if efficiency were increased to an ideal level, then the cycle time should be 0.20 hours. If this were to occur, what would the cost per plate be? Answer Check Figures: Unit conversion cost = $10.54