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		160% 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	$6,750,000
Units, ending work in process (100% materials; 64% conversion)	50,000

Required:

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

Lacy, Inc.
Physical flow schedule
Units to account for:
Units, beginning WIP
Units started
Total units to account for
Units accounted for:
Units completed
Units, ending WIP
Total units accounted for

Feedback

2. Calculate equivalent units of production for:

	Equivalent Units
a. Direct Materials
b. Conversion Costs

3. 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

4. Provide the following information: a. The total cost of units transferred out $

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

c. The cost assigned to units in ending inventory. $