Actual Usage (by Plate Cutting) Driver Rate S 732,000 Direct labor cost Inspection hours Purchase orders 150% of direct labor S40 per hour S1,000 per order 7,450 hours 800 orders Other data for the Plate Cutting Department are as follows: Beginning work in process Units started 750,000 Direct materials cost Units, ending work in process (100% materials; 64% conversion) $6,000,000 50,000
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. Materialsare added at the beginning of the process.
activity rates:
Required:
1. Prepare a physical flow schedule.
2. Calculate equivalent units of production for:
a. Direct materials
b. Conversion costs
3. Calculate unit costs for:
a. Direct materials
b. Conversion costs
c. Total manufacturing
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
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