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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:

DriverRateActual Usage

(by Plate Cutting)

Direct labor cost150% of direct labor$732,000

Inspection hours$40 per hour7,450 hours

Purchase orders$1,000 per order800 orders

Other data for the Plate Cutting Department are as follows:

Beginning work in process

Units started750,000

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".

Units to account for:

Units, beginning WIP

Units started

Total units to account

Units completed

Units, ending WIP

Total units accounted for

2. Calculate equivalent units of production for:

Equivalent Units

a. Direct Materials

b. Conversion Costs

3. Calculate unit costs for the following. Round your answers to the nearest cent.

a. Direct materials$per unit

b. Conversion costsper unit

c. Total manufacturing$per unit

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.