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: 1. Prepare a physical flow schedule. If an answer is zero, enter "0". Lacy, Inc. Physical flow schedule Units to account for: fill in the blank 63cd9401dfb0027_2 fill in the blank 63cd9401dfb0027_4 Total units to account for fill in the blank 63cd9401dfb0027_5 Units accounted for: fill in the blank 63cd9401dfb0027_7 fill in the blank 63cd9401dfb0027_9 Total units accounted for fill in the blank 63cd9401dfb0027_10 2. Calculate equivalent units of production for: Equivalent Units a. Direct Materials fill in the blank e6e4bff50005066_1 b. Conversion Costs fill in the blank e6e4bff50005066_2 3. Calculate unit costs for the following. a. Direct materials $fill in the blank e6e4bff50005066_3 per unit b. Conversion costs fill in the blank e6e4bff50005066_4 per unit c. Total manufacturing $fill in the blank e6e4bff50005066_5 per unit
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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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:
1. Prepare a physical flow schedule. If an answer is zero, enter "0".
Lacy, Inc. Physical flow schedule Units to account for: fill in the blank 63cd9401dfb0027_2 fill in the blank 63cd9401dfb0027_4 Total units to account for fill in the blank 63cd9401dfb0027_5 Units accounted for: fill in the blank 63cd9401dfb0027_7 fill in the blank 63cd9401dfb0027_9 Total units accounted for fill in the blank 63cd9401dfb0027_10 2. Calculate equivalent units of production for:
Equivalent Units a. Direct Materials fill in the blank e6e4bff50005066_1 b. Conversion Costs fill in the blank e6e4bff50005066_2
3. Calculate unit costs for the following.
a. Direct materials $fill in the blank e6e4bff50005066_3 per unit b. Conversion costs fill in the blank e6e4bff50005066_4 per unit c. Total manufacturing $fill in the blank e6e4bff50005066_5 per unit 4. Provide the following information:
a. The total cost of units transferred out
$fill in the blank e6e4bff50005066_6b. The
journal entry for transferring costs from Plate Cutting to Weldingfill in the blank e0a54c0bd05e07c_2 fill in the blank e0a54c0bd05e07c_4 c. The cost assigned to units in ending inventory.
$fill in the blank e69d8bff000df8b_1
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