Physical Flow, Equivalent Units, Unit Costs, No Beginning WIP Inventory, Activity$-$Based Costing, DBC Prepare a physical flow schedule. If an answer is zero, enter $"0".$

McKay, Inc.

Physical flow schedule

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A physical flow schedule shows the units to account for and what happened to them.

Calculate equivalent units of production for: Calculate equivalent units of production for:

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

a$.$ Direct materials

$$ per unit

b$.$ Conversion costs

per unit

c$.$ Total manufacturing

per unit

Provide the following information:

a$.$ The total cost of units transferred out

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$4$ b$.$ Unit cost $=$ Costs of the period $$ Output of the period

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

$

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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$)?$

$$0\mathrm{.}3278$ hours per unita. What is the actual cycle time for the conversion cost output for the plate subassembly $($round to four decimal places$)?$

$!$

$x$ 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$)?$

$

$$ per hour

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 $0\mathrm{.}20$ hours. If this were to occur, what would the cost per plate

be$?($round to the nearest cent$)?$

$

Identify the data analytic types $($descriptive$,$ diagnostic, predictive, or prescriptive$)$ that apply to parts a$.$ through d$.($see Exhibit $2\mathrm{.}5$ and Exhibit $2\mathrm{.}6$ 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 predictive and prescriptive $.$

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:

Actual Usage

During the first quarter, the Plate Cutting Department used $28,800$ 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

$$630,000$

Units, ending work in process $(100\%$

materials; $64\%$ conversion$),$ March $31$

$6,000$

Required:

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