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:

Driver		Rate		Actual Usage (by Plate Cutting)
Direct labor cost		150% of direct labor		$732,000
Inspection hours		$40 per hour		7,450 hours
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	$6,000,000
Units, ending work in process (100% materials; 64% conversion)	50,000

Required:

Question Content Area

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

blank Lacy, Inc. Physical flow schedule

Units to account for:	blank
Units, beginning WIPUnits completedUnits, ending WIPUnits, beginning WIP	Units, beginning WIP
Units completedUnits, ending WIPUnits startedUnits started	Units started
Total units to account for	fill in the blank 8304150bcfc8f89_5
Units accounted for:	blank
Units, beginning WIPUnits completedUnits startedUnits completed	Units completed
Units, beginning WIPUnits, ending WIPUnits startedUnits, ending WIP	Units, ending WIP
Total units accounted for	fill in the blank 8304150bcfc8f89_10

Feedback Area

Feedback

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

Question Content Area

2. Calculate equivalent units of production for:

	Equivalent Units
a. Direct Materials	fill in the blank 010ef5fecfadf9f_1
b. Conversion Costs	fill in the blank 010ef5fecfadf9f_2

3. Calculate unit costs for the following.

a. Direct materials	$fill in the blank 010ef5fecfadf9f_3	per unit
b. Conversion costs	fill in the blank 010ef5fecfadf9f_4	per unit
c. Total manufacturing	$fill in the blank 010ef5fecfadf9f_5	per unit

4. Provide the following information: a. The total cost of units transferred out $fill in the blank 010ef5fecfadf9f_6