Shutter, Inc., is a manufacturer of digital cameras. It has two departments: assembly and testing. In February 2012, the company incurred $850,000 on direct materials and $775,000 on conversion costs, for a total manufacturing cost of $1,600,000. During February 10,000 cameras are placed into production, but only 5,000 cameras are fully completed at the end of the month. All direct materials have been added to the remaining 5,000 cameras. Hovewer, on average, these remaining 5,000 cameras are only 50% complete as to conversion costs.

1. PLEASE Prepare summary journal entries for the use of direct materials and incurrence of conversion costs. Also prepare a journal entry to transfer ou the cost of goods completed. Show the postings to the Work in Process account.

Costs incurred during the period Equivalent units of work done in current period Cost per equivalent unit Direct Materials Conversion Costs Total 825,000 775,000 7,500 10,000 82.50 103.33 185.83