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		$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 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	$720,000
Units, ending work in process (100% materials; 64% conversion), March 31	6,000

Required:

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

Units to account for:	blank
Units, beginning WIPUnits completedUnits, ending WIPUnits, beginning WIP	Units, beginning WIP
Units completedUnits, ending WIPUnits startedUnits completed	Units completed
Total units to account for	fill in the blank fb7ec8f8ff93fb9_5
Units accounted for:	blank
Units, beginning WIPUnits completedUnits started	- Select -
Units, beginning WIPUnits, ending WIPUnits started	- Select -
Total units accounted for	fill in the blank fb7ec8f8ff93fb9_10

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2. Calculate equivalent units of production for:

	Equivalent Units
a. Direct Materials	fill in the blank 440f79027009072_1
b. Conversion Costs	fill in the blank 440f79027009072_2

3. Calculate unit costs for the following.

a. Direct materials	$fill in the blank 440f79027009072_3	per unit
b. Conversion costs	fill in the blank 440f79027009072_4	per unit
c. Total manufacturing	$fill in the blank 440f79027009072_5	per unit

4. Provide the following information: a. The total cost of units transferred out $fill in the blank 440f79027009072_6

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

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

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c. The cost assigned to units in ending inventory. $fill in the blank 4ae4e70c105a052_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 0cfe9cfff04d059_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 0cfe9cfff04d059_2 per hour

c. What is the conversion cost per unit, using duration-based costing (round to the nearest cent)? $fill in the blank 0cfe9cfff04d059_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 0cfe9cfff04d059_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 ______ in nature. The last calculation has elements of ________.