Question
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
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:
Question Content Area
1. Prepare a physical flow schedule. If an answer is zero, enter "0".
| Units to account for: | blank |
| Units, beginning WIPUnits completedUnits, ending WIPUnits, beginning WIP | Units, beginning WIP |
| Units completedUnits, ending WIPUnits startedUnits started | Units started |
| Total units to account for | fill in the blank 8304150bcfc8f89_5 |
| Units accounted for: | blank |
| Units, beginning WIPUnits completedUnits startedUnits completed | Units completed |
| Units, beginning WIPUnits, ending WIPUnits startedUnits, ending WIP | Units, ending WIP |
| Total units accounted for | fill in the blank 8304150bcfc8f89_10 |
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 010ef5fecfadf9f_1 |
| b. Conversion Costs | fill in the blank 010ef5fecfadf9f_2 |
3. Calculate unit costs for the following.
| a. Direct materials | $fill in the blank 010ef5fecfadf9f_3 | per unit |
| b. Conversion costs | fill in the blank 010ef5fecfadf9f_4 | per unit |
| c. Total manufacturing | $fill in the blank 010ef5fecfadf9f_5 | per unit |
4. Provide the following information: a. The total cost of units transferred out $fill in the blank 010ef5fecfadf9f_6
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The Lakeside Company Case Studies In Auditing
Authors: John Trussel, J. Douglas Frazer
12th Edition
0132567253, 978-0132567251
