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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 Required 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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Dear Student, Please find the attached solution herewith. Regards  

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1

1850000
366000
549000
74500
200000

Total Cost

2

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

3039500

Equivalent Unit of...