Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Physical Flow, Equivalent Units, Unit Costs, No Beginning WIP Inventory, Activity - Based Costing, DBC McKay, Inc., produces a subassembly used in the production of

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:
Driver Rate Actual Usage
(by Plate Cutting)
Direct labor cost 120% of direct labor $330,000
Inspection hours $40 per hour 4,002 hours
Number of moves $100 per move 1,680 moves
During the first quarter, the Plate Cutting Department used 20,000 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 $720,000
Units, ending work in process (100%
materials; 64% conversion), March 316,000
Required:
Question Content Area
1. Prepare a physical flow schedule. If an answer is zero, enter "0".
blank
McKay, Inc.
Physical flow schedule
Units to account for: blank
Units, beginning WIP
Units, beginning WIP
0
Units started
Units started
90,000
Total units to account for fill in the blank 05b66401d05607b_5
90,000
Units accounted for: blank
Units completed
Units completed
84,000
Units, ending WIP
Units, ending WIP
6,000
Total units accounted for fill in the blank 05b66401d05607b_10
90,000
Feedback Area
Feedback
1. A physical flow schedule shows the units to account for and what happened to them.
Question Content Area
2. Calculate equivalent units of production for:
Equivalent Units
a. Direct Materials fill in the blank 6ff6cd07706e00e_1
90,000
b. Conversion Costs fill in the blank 6ff6cd07706e00e_2
87,840
3. Calculate unit costs for the following.
a. Direct materials $fill in the blank 6ff6cd07706e00e_3
8
per unit
b. Conversion costs fill in the blank 6ff6cd07706e00e_4
12
per unit
c. Total manufacturing $fill in the blank 6ff6cd07706e00e_5
20
per unit
4. Provide the following information:
a. The total cost of units transferred out
$fill in the blank 6ff6cd07706e00e_6
1,680,000
Question Content Area
b. The journal entry for transferring costs from Plate Cutting to Welding
blank
Work in Process-Welding
1,680,000
Work in Process-Plate Cutting
1,680,000
Question Content Area
c. The cost assigned to units in ending inventory.
$fill in the blank bc935b01305d02f_1
94,080
Question Content Area
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)?
b. What is the conversion cost rate for the first quarter, using total conversion costs and total time (round to the nearest cent)?
c. What is the conversion cost per unit, using duration-based costing (round to the nearest cent)?
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)?
Please answer question 5, parts a-d please.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions