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Physical Flow, Equivalent Units, Unit Costs, No Beginning WIP Inventory, Activity-Based Costing Lacy, Inc., produces a...

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 120% 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 $5,250,000
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:
Total units to account for
Units accounted for:
Total units accounted for

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.

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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