Shutter, Inc. is a manufacturer of digital cameras. It has two departments: assembly and testing. In...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Shutter, Inc. is a manufacturer of digital cameras. It has two departments: assembly and testing. In January 2017, the company incurred $780,000 on direct materials and $810,000 on conversion costs, for a total manufacturing cost of $1,590,000. Read the requirements. Requirement 1. Assume there was no beginning inventory of any kind on January 1, 2017. During January, 5,000 cameras were placed into production and all 5,000 were fully completed at the end of the month. What is the unit cost of an assembled camera in January? (Round your answers to the nearest cent.) Direct materials cost per unit Conversion cost per unit Assembly department cost per unit Requirements 1. Assume there was no beginning inventory of any kind on January 1, 2017. During January, 5,000 cameras were placed into production and all 5,000 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 5,000 cameras are placed into production. Further assume the same total assembly costs for January are also incurred in February, but only 4,000 cameras are fully completed at the end of the month. All direct materials have been added to the remaining 1,000 cameras. However, on average, these remaining 1,000 cameras are only 25% 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 2017? 3. Explain the difference in your answers to requirements 1 and 2. X Shutter, Inc. is a manufacturer of digital cameras. It has two departments: assembly and testing. In January 2017, the company incurred $780,000 on direct materials and $810,000 on conversion costs, for a total manufacturing cost of $1,590,000. Read the requirements. Requirement 1. Assume there was no beginning inventory of any kind on January 1, 2017. During January, 5,000 cameras were placed into production and all 5,000 were fully completed at the end of the month. What is the unit cost of an assembled camera in January? (Round your answers to the nearest cent.) Direct materials cost per unit Conversion cost per unit Assembly department cost per unit Requirements 1. Assume there was no beginning inventory of any kind on January 1, 2017. During January, 5,000 cameras were placed into production and all 5,000 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 5,000 cameras are placed into production. Further assume the same total assembly costs for January are also incurred in February, but only 4,000 cameras are fully completed at the end of the month. All direct materials have been added to the remaining 1,000 cameras. However, on average, these remaining 1,000 cameras are only 25% 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 2017? 3. Explain the difference in your answers to requirements 1 and 2. X
Expert Answer:
Answer rating: 100% (QA)
Solution Civen data Requirement 1 Direct material cost per unit Conve... View the full answer
Related Book For
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134475585
16th edition
Authors: Srikant M. Datar, Madhav V. Rajan
Posted Date:
Students also viewed these accounting questions
-
For 7a-c, use u1= 4. Round your answers to the nearest thousandth. a. For a geometric series with r = 0.7, find S10 and S40. b. For r = 1.3, find S10 and S40. c. For r = 1, find S10 and S40. d. Graph...
-
During June, 32,000 units were placed into production and 31,200 units were completed, including those in inventory on June 1. On June 30, the inventory of work in process consisted of 4,600 units...
-
The Jordan Corporation is a manufacturer of heavy-duty trucks. Because of a low internal profitability rate and lack of favorable investment opportunities in the existing line of business, Jordan is...
-
Mary, who is single, had the following items for 2016: Required: Determine Marys adjusted gross income for 2016. Salary $80,000 Loss on sale of 8 1244 small business stock acquired 3 years ago...
-
1. Find the capacitive reactance of a 15.0-F capacitor in a circuit of frequency 60.0 Hz. 2. Find the capacitive reactance of a 45.0-F capacitor in a circuit of frequency 60.0 kHz. 3. Find the...
-
The shareholders' equity portion of the balance sheet of Sessel's Department Stores, Inc., a large regional specialty retailer, is as follows: Disclosures elsewhere in Sessel's annual report revealed...
-
Discuss the nature and purpose of the income statement.
-
Wasik Company had the following inventory balances at the beginning and end of August 2010: All raw material is direct to the production process. The following information is also available about...
-
The marketing division of a large firm has found that it can model the sales generated by an advertising campaign as S(u) = 0.25u+ 1.5 millions of dollars when the firm invests u thousand dollars in...
-
Knowing that the tension in rope AC is 365 N, determine the resultant of the three forces exerted at point C of post BC. 500 N 25 24 L= 1460 mm 200 N 1100 mm -960 mm-
-
The Government of Ghana has initiated severally policies aimed at digitalizing the economy. Over the past decade, the government has initiated policies such as the e-payslip to curb ghost workers,...
-
How could interventions that help people avoid alienation be made culturally sensitive? If you were the director of the campus career services office, what would you do to provide students with...
-
15. Using information from your operationalized definition of consciousness: Please write an answer that describes the theory (how) that consciousness is executed by material objects? 16. Using...
-
How can effective employee and labor relations contribute to the overall success and productivity of an organization?
-
How has your role as educational leader influenced education outcomes for children; what are examples of this?
-
In Eppler's (1995) study, all 5-month-old infants looked to the monitor with matching visual social information (i.e., when they heard a woman talking from the central monitor, they looked at the...
-
1. What is the electric force between a 4.00 x 10^6 C charge and an 8.00 x 10^6 C change when they are separated by 5.0 m? a. 0.0575 N b. 0.0115 N c. 0.0128 N d. 0.0720 N
-
a. Determine the domain and range of the following functions.b. Graph each function using a graphing utility. Be sure to experiment with the window and orientation to give the best perspective of the...
-
What is the relationship between management by exception and variance analysis?
-
Stein Corporation wants to find an equation to estimate some of their monthly operating costs for the operating budget for 2018. The following cost and other data were gathered for 2017: Required 1....
-
You are a new junior accountant at In Focus Corporation, maker of lenses for eyeglasses. Your company sells generic-quality lenses for a moderate price. Your boss, the controller, has given you the...
-
Which of the following combinations results in a decrease in sample size in a sample for attributes? Risk of Assessing Control Risk Too Low a. Increase b. Decrease c. Increase d. Increase Tolerable...
-
Whatare the nine major steps utilized in a comprehensive approach to information system auditing? Explain why each step is important.
-
Identify four monitoring controls the auditor would expect to find in a welldesigned computer system. Explain the objective of each control identified.
Study smarter with the SolutionInn App