A&A Inc. is a manufacturer of digital cameras. It has two departments: assembly and testing. In January
Question:
A&A Inc. is a manufacturer of digital cameras. It has two departments: assembly and testing. In January 201 8, the company incurred $900,000 on direct materials and $957,600 on conversion costs, for a total manufacturing cost of $l,857,600.
Required
1. Assume there was no beginning inventory of any kind on January 1, 201 8. During January, 12,000 cameras were placed into production and all 12,000 were fully completed at the end of the month. What is the unit cost of an assembled camera in January 2018?
2. Assume that during February, 12,000 cameras were placed into production. Further assume the same total assembly costs for January are also incurred in February 2018, but only 9,000 cameras are full y completed at the end of February. All direct materials have been added to the remaining 3,000 cameras. However, on average, these remaining 3,000 cameras are only 50% 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? (bl What is the unit cost of an assembled camera in February 2018?
3. Explain the difference in your answers to requirements 1 and 2.
Step by Step Answer:
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134453736
8th Canadian Edition
Authors: Srikant M. Datar, Madhav V. Rajan, Louis Beaubien