Chapter 6, Problem 14E

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:

Other data for the Plate Cutting Department are as follows:

Required:

1. 1. Prepare a physical flow schedule.
2. 2. Calculate equivalent units of production for:
   1. a. Direct materials
   2. b. Conversion costs
3. 3. Calculate unit costs for:
   1. a. Direct materials
   2. b. Conversion costs
   3. c. Total manufacturing
4. 4. Provide the following information:
   1. a. The total cost of units transferred out
   2. b. The journal entry for transferring costs from Plate Cutting to Welding
   3. c. The cost assigned to units in ending inventory