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Littlejohn inc,. Produces a subassembly used in the production of hydraulic cylinders. The subassemblies are produced in three departments: rod cutting, plate cutting and welding. Overhead is applied using the following drivers and activity rates:
Driver rate actual usage
Direct labor cost 150% of direct labor cost $366,000
Inspection hours $20 per hour 3,725 hours
Purchase orders $500 per order 400 orders
Other data for the plate cutting department are as follows:
Beginning work in process -----
Units started 370,000
Direct materials cost $1,850,000
Units, ending work in process (100% materials; 80% conversion) 20,000
1. Prepare a physical flow schedule
2. Calculate equivalent units of production for:
A. Direct materials
B. Conversion cost
3. Calculate unit costs for:
A. Direct materials
B. Conversion costs
C. Total manufacturing
4. Provide the following information:
a. The total cost of units transferred out
b. The journal entry for transferring costs from plate cutting to welding
c. The cost assigned to units in ending inventory

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Total Cost


Physical flow of schedule
Direct material
Direct labour Cost
Inspection Charges
Purchase Order cost


Equivalent Unit of...