Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Nihon, Inc. is a manufacturer of digital cameras. It has two departments: assembly and testing. In January 2017, the company incurred $775,000 on direct

image text in transcribed

Nihon, Inc. is a manufacturer of digital cameras. It has two departments: assembly and testing. In January 2017, the company incurred $775,000 on direct materials and $825,000 on conversion costs, for a total manufacturing cost of $1,600,000 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 155.00 165.00 320 00 Requirement 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 75% 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? (a) What are the equivalent units for direct materials and conversion costs and their respective costs per equivalent unit for February? First calculate the equivalent units Completed and transferred out in current period Work in process, ending Work done in current period Equivalent Units Direct Materials Conversion Costs

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Debra C. Jeter, Paul Chaney

5th Edition

1118022297, 9781118214169, 9781118022290, 1118214161, 978-1118098615

More Books

Students also viewed these Accounting questions

Question

Solve Problem 2.28 for a discharge of 7.5 m3/s.

Answered: 1 week ago

Question

The ideal Current Ratio is ............. (2 : 1 / 1 : 2 / 0.5 : 2)

Answered: 1 week ago