Question

Candid, Inc., is a manufacturer of digital cameras. The company has two departments: assembly and testing. In January 2013, the company incurred $ 825,000 on direct materials and $ 820,000 on conversion costs, for a total manufacturing cost of $ 1,645,000.

Required
1. Assume there was no beginning inventory of any kind on January 1, 2013. During January, 20,000 cameras were placed into production and all 20,000 were fully completed at the end of the month. What is the unit cost of an assembled camera in January?
2. Assume that during February 20,000 cameras are placed into production. Further assume the same total assembly costs for January are also incurred in February, but only 15,000 cameras are fully completed at the end of the month. All direct materials have been added to the remaining 5,000 cameras. However, on average, these remaining 5,000 cameras are only 60% complete as to conversion costs.
(a) What are the equivalent units for direct materials and conversion costs and their respective costs per equivalent unit for February?
(b) What is the unit cost of an assembled camera in February 2013?
3. Explain the difference in your answers to requirements 1 and 2.



$1.99
Sales0
Views141
Comments0
  • CreatedJanuary 15, 2015
  • Files Included
Post your question
5000