T&T Inc. is a manufacturer of digital cameras. It has two departments: assembly and testing. In January 2018, the company incurred $910,000 on direct materials and $957,400 on conversion costs for a total manufacturing cost of $1,867,400. Required Requirement 1. Assume there was no beginning inventory of any kind on January 1, 2018. During January, 8,000 cameras were placed into production and all 8,000 were fully completed at the end of the month. What is the unit cost of an assembled camera in January 2018? (Round your answers to the nearest cent.) Direct materials cost per unit 113.75 Conversion cost per unit 119.675 233.425 Assembly department cost per unit Requirement 2a. Assume that during February, 8,000 cameras were placed into production. Further, assume the same total assembly costs for January are also incurred in February 2018, but only 3,000 cameras are fully completed at the end of February. All direct materials have been added to the remaining 5,000 cameras. However, on average, these remaining 5,000 cameras are only 40% complete as to conversion costs. 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 for both direct materials and conversion costs. Equivalent Units Direct Materials Conversion Costs Completed and transferred out in current period Work in process, ending Work done in current period Now calculate the direct materials and conversion costs per equivalent unit for February. (Round your final answers to the nearest cent.) Direct Materials Conversion Costs Costs incurred during February Equivalent units of work done in current period Cost per equivalent unit Requirement 2b. What is the unit cost of an assembled camera in February 2018? (Round your answer to the nearest cent.) Assembly department cost per unit Requirement 3. Explain the difference in your answers to requirements 1 and 2. The difference in the assembly department cost per unit calculated in requirements 1 and 2 arises because the costs incurred in January and February are the same but fewer equivalent units of work are done in February relative to January. In January, all 8,000 units introduced are fully completed resulting in 8,000 equivalent units of work done with respect to direct materials and conversion costs. In February, of the 8,000 units introduced, 8,000 equivalent units of work is done with respect to direct materials but only equivalent units of work is done with respect to conversion costs. Therefore, the assembly department cost per unit is higher