Physical Flow, Equivalent Units, Unit Costs, No Beginning WIP Inventory, Activity-Based Costing Lacy, 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 (by Plate Cutting) Driver Rate Direct labor cost 120% of direct labor $732,000 7,450 hours Inspection hours $40 per hour Purchase orders $1,000 per order 800 orders Other data for the Plate Cutting Department are as follows: Beginning work in process Units started 750,000 Direct materials cost $7,500,000 Units, ending work in process (100% materials; 64% conversion) 50,000 Required: 3. Calculate unit costs for the following. Round your answers to the nearest cent. a. Direct materials 10.00 per unit b. Conversion costs 2.5 X per unit c. Total manufacturing 12.5 X per unit 4. Provide the following information: a. The total cost of units transferred out Feedback Check My Work 2. The equivalent units schedule measures the output of the period. A fully completed unit is counted as a unit of output. 3. Unit cost = Costs of the period = Output of the period 4 a. The cost of goods (services) transferred out is the unit cost multiplied by the units completed. The cost of EWIP is the process by debiting the WIP account of the process receiving the unit and crediting the WIP account of the transferring de b. The journal entry for transferring costs from Plate Cutting to Welding Work in Process-Welding Work in Process-Plate Cutting X Feedback Check My Work c. The cost assigned to units in ending inventory. X