Need part 5 Answered
Physical Flow, Equivalent Units, Unit Costs, No Beginning WIP Inventory, Activity-Based Costing, DBC McKay, 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 (by Plate Cutting) Driver Rate Direct labor cost $87,840 170% of direct labor % $40 per hour $ Inspection hours 4,002 hours Number of moves $100 per move 1,680 moves During the first quarter, the Plate Cutting Department used 23,800 hours (direct, indirect, and machine hours) to produce the quarter's output. Other quarterly data for the Plate Cutting Department are as follows: Beginning work in process, January 1 Units started 90,000 Direct materials cost $900,000 Units, ending work in process (100% materials: 64% conversion), March 31 6,000 Required: 1. Prepare a physical flow schedule. If an answer is zero, enter "o". McKay, Inc. Physical flow schedule Units to account for: Units, beginning WIP 0 Units started 90,00 Total units to account for 90,00 Units accounted for: Units completed 84,00 Units, ending WIP 6,000 Total units accounted for 90,00 Feedback Check My Work 1. A physical flow schedule shows the units to account for and what happened to them. 2. Calculate equivalent units of production for: Equivalent Units a. Direct Materials 90,000 b. Conversion Costs 87,840 3. Calculate unit costs for the following. Round your answers to the nearest cent. a. Direct materials 10 per unit b. Conversion costs 6.43 per unit c. Total manufacturing 16.43 per unit 4. Provide the following information: a. The total cost of units transferred out 1,380,120 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. 3. Unit cost = Costs of the period = Output of the period 4 a. 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 (department) by debiting the WIP account of the process (department) receiving the unit and crediting the WIP account of the transferring process (department). b. The journal entry for transferring costs from Plate Cutting to Welding Work in Process-Welding 1,380,12 Work in Process-Plate Cutting 1,380,12 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. Round your answers to the nearest cent. $ 84,691 X 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 (department) by debiting the WIP account of the process (department) receiving the unit and crediting the WIP account of the transferring process (department). 5. Suppose the plant manager asked the following questions: a. What is the actual cycle time for the conversion cost output for the plate subassembly (round to four decimal places)? 0.2596 X hours per unit b. What is the conversion cost rate for the first quarter, using total conversion costs and total time (round to the nearest cent)? 24.79 X per hour c. What is the conversion cost per unit, using duration-based costing (round to the nearest cent)? 6.43 d. According to production engineering, if efficiency were increased to an ideal level, then the cycle time should be 0.20 hours. If this were to occur, what would the cost per plate be? (round to the nearest cent)? 24.79 X
