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: Actual Usage Driver Direct labor cost Inspection hours Number of moves Rate (by Plate Cutting) 170% of direct labor $87,840 $40 per hour $100 per move 4,002 hours 1,680 moves During the first quarter, the Plate Cutting Department used 23,800 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 Units, ending work in process (100% 90,000 $900,000 materials; 64% conversion), March 31 Required: 6,000 1. Prepare a physical flow schedule. If an answer is zero, enter "0". McKay, Inc. Physical flow schedule Units to account for: Total units to account for Units accounted for: Total units accounted for 2. Calculate equivalent units of production for: a. Direct Materials b. Conversion Costs Equivalent Units