Physical Flow, Equivalent Units, Unit Costs, No Beginning WIP Inventory, Activity-Based Costing

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:

Driver		Rate		Actual Usage (by Plate Cutting)
Direct labor cost		150% of direct labor		$732,000
Inspection hours		$40 per hour		7,450 hours
Purchase orders		$1,000 per order		800 orders

Other data for the Plate Cutting Department are as follows:

Beginning work in process
Units started	750,000
Direct materials cost	$6,000,000
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".

Lacy, Inc.
Physical flow schedule
Units to account for:
	fill in the blank dabef5f7d00501b_2
	fill in the blank dabef5f7d00501b_4
Total units to account for	fill in the blank dabef5f7d00501b_5
Units accounted for:
	fill in the blank dabef5f7d00501b_7
	fill in the blank dabef5f7d00501b_9
Total units accounted for	fill in the blank dabef5f7d00501b_10

2. Calculate equivalent units of production for:

	Equivalent Units
a. Direct Materials	fill in the blank 798d5cf7707800d_1
b. Conversion Costs	fill in the blank 798d5cf7707800d_2

3. Calculate unit costs for the following.

a. Direct materials	$fill in the blank 798d5cf7707800d_3	per unit
b. Conversion costs	fill in the blank 798d5cf7707800d_4	per unit
c. Total manufacturing	$fill in the blank 798d5cf7707800d_5	per unit

4. Provide the following information: a. The total cost of units transferred out $fill in the blank 798d5cf7707800d_6

b. The journal entry for transferring costs from Plate Cutting to Welding

		fill in the blank 9a3f2501af8efd8_2
			fill in the blank 9a3f2501af8efd8_4

c. The cost assigned to units in ending inventory. $fill in the blank 85572a068fcdf8a_1