eBook Calculator 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: Actual Usage Driver Rate (by Plate Cutting) Direct labor cost 160% 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 $6,750,000 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". 2. Calculate equivalent units of production for: Equivalent Units a. Direct Materials 750,000 b. Conversion Costs 732,000 3. Calculate unit costs for the following. Round your answers to the nearest cent. a. Direct materials $ 9 per unit b. Conversion costs 4.10 per unit c. Total manufacturing $ 13.00 X per unit 4. Provide the following information: a. The total cost of units transferred out $ Feedback Check My Work 2. The equivalent units schedule measures the output of the period. A fully completed unit is counted as a unit of output. Output for a unit in ending work in process is counted by its degree of completion. > b. The journal entry for transferring costs from Plate Cutting to Welding Work in Process-Welding Work in Process-Plate Cutting Feedback Check My Work 4 b. Unit cost = Costs of the period = Output of the period c. The cost assigned to units in ending inventory. Feedback Check My Work 4 c. The cost of goods (services) transferred out is the unit cost multiplied by the units completed. The cost of EWIP is the unit cost multiplied by the equivalent units found in EWIP. The partially completed units and all their associated costs are transferred to the next process by debiting the WIP account of the process receiving the unit and crediting the WIP account of the transferring department