Physical Flow, Equivalent Units, Unit Costs, No Beginning WIP Inventory, Activity-Based Costing, DBC

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		$87,840
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 29,200 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	90,000
Direct materials cost	$540,000
Units, ending work in process (100% materials; 64% conversion), March 31	6,000

Required:

1. Prepare a physical flow schedule. If an answer is zero, enter "0".

McKay, Inc. Physical flow schedule

Units to account for:
Units, beginning WIPUnits completedUnits, ending WIP	- Select -
Units completedUnits, ending WIPUnits started	- Select -
Total units to account for	fill in the blank 811e3a035fc206c_5
Units accounted for:
Units, beginning WIPUnits completedUnits started	- Select -
Units, beginning WIPUnits, ending WIPUnits started	- Select -
Total units accounted for	fill in the blank 811e3a035fc206c_10

2. Calculate equivalent units of production for:

	Equivalent Units
a. Direct Materials	fill in the blank 4405b5f6801ffd0_1
b. Conversion Costs	fill in the blank 4405b5f6801ffd0_2

3. Calculate unit costs for the following. Round your answers to the nearest cent.

a. Direct materials	$fill in the blank 4405b5f6801ffd0_3	per unit
b. Conversion costs	fill in the blank 4405b5f6801ffd0_4	per unit
c. Total manufacturing	$fill in the blank 4405b5f6801ffd0_5	per unit

4. Provide the following information: a. The total cost of units transferred out $fill in the blank 4405b5f6801ffd0_6

b. The journal entry for transferring costs from Plate Cutting to Welding

	CashMaterialsOverheadWork in Process-Plate CuttingWork in Process-Rod CuttingWork in Process-Welding	- Select -
	CashMaterialsOverheadWork in Process-Plate CuttingWork in Process-Rod Cutting		- Select -

c. The cost assigned to units in ending inventory. Round your answers to the nearest cent. $fill in the blank 73e382026fabf96_1

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)? $fill in the blank a926d7012fe102f_1 hours per unit

b. What is the conversion cost rate for the first quarter, using total conversion costs and total time (round to the nearest cent)? $fill in the blank a926d7012fe102f_2 per hour

c. What is the conversion cost per unit, using duration-based costing (round to the nearest cent)? $fill in the blank a926d7012fe102f_3

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? (round to the nearest cent)? $fill in the blank a926d7012fe102f_4

Identify the data analytic types (descriptive, diagnostic, predictive, or prescriptive) that apply to parts a. through d. (see Exhibit 2.5 and Exhibit 2.6 for a review of data analytic metrics). Note: More than one data analytic type might apply.

The first three calculations are

descriptivediagnosticpredictiveprescriptive

in nature. The last calculation has elements of

descriptivediagnosticpredictiveprescriptivedescriptive and diagnosticpredictive and prescriptive

.