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:

Driver Rate Actual Usage (by Plate Cutting)

Direct labor cost 150% of direct labor cost $366,000

Inspection hours $20 per hour 3,725 hours

Purchase orders $500 per order 400 orders

Other data for the plate cutting department are as follows:

Beginning work in process

Units started 370,000

Direct materials cost $1,850,000

Units, ending work in process

(100% materials; 80% conversion)20,000

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