Question
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.
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 | $87,840 | ||
| 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 21,300 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 | $810,000 |
| Units, ending work in process (100% materials; 64% conversion), March 31 | 6,000 |
Required:
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1. Prepare a physical flow schedule. If an answer is zero, enter "0".
| Units to account for: | blank |
| Units, beginning WIP Units completed Units, ending WIP Units, beginning WIP | Units, beginning WIP |
| Units completed Units, ending WIP Units started Units started | Units started |
| Total units to account for | fill in the blank 3bc2c5f7a01103e_5 |
| Units accounted for: | blank |
| Units, beginning WIP Units completed Units started Units completed | Units completed |
| Units, beginning WIP Units, ending WIP Units started Units, ending WIP | Units, ending WIP |
| Total units accounted for | fill in the blank 3bc2c5f7a01103e_10 |
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2. Calculate equivalent units of production for:
| Equivalent Units | |
| a. Direct Materials | fill in the blank 03634ff2af86065_1 |
| b. Conversion Costs | fill in the blank 03634ff2af86065_2 |
3. Calculate unit costs for the following. Round your answers to the nearest cent.
| a. Direct materials | $fill in the blank 03634ff2af86065_3 | per unit |
| b. Conversion costs | fill in the blank 03634ff2af86065_4 | per unit |
| c. Total manufacturing | $fill in the blank 03634ff2af86065_5 | per unit |
4. Provide the following information: a. The total cost of units transferred out $fill in the blank 03634ff2af86065_6
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b. The journal entry for transferring costs from Plate Cutting to Welding
| blank | Cash Materials Overhead Work in Process-Plate Cutting Work in Process-Rod Cutting Work in Process-Welding | - Select - | |
| Cash Materials Overhead Work in Process-Plate Cutting Work in Process-Rod Cutting | - Select - |
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