Mizukawa, Inc., produces a subassembly used in the production of hydraulic cylinders.

The subassemblies are produced in three departments: plate cutting, rod cutting, and welding. Overhead is applied using the following drivers and 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

Transcribed Image Text:

Rate 150% of direct labor cost Driver Direct labor cost Inspection hours $20 per hour Purchase orders $500 per order Actual Usage (by Plate Cutting) Other data for the plate cutting department are as follows: Beginning work in process Units started $366,000 3,725 hours 400 orders Direct materials cost Units, ending work in process (100% materials; 80% conversion) 370,000 $1,850,000 20,000