dwig Uptical makes three models of binoculars: Travel, Sport, and Pro. The models differ by the size of the casing and the quality of the optics. The binoculars are produced in two departments. The Assembly Department purchases components from vendors and assembles them into binoculars. The Travel and Sport models are complete and ready for sale after completing the assembly process. The Pro model undergoes further processing in the Calibration Department, which is actually just a small area in the same building as the Assembly Department. Conversion costs in both the Assembly Department and Calibration Department are based on the number of units produced. There are never any work-in-process inventories. Data for production in January are shown in the following table: Units produced Materials cost Conversion costs Assembly Calibration Total conversion costs Total 34,000 $ 1,642,000 $ 440,000 44,400 $ 484,400 Travel Sport 12,750 17,000 4,250 $ 304,000 $ 861,500 $ 476,500 Pro Required: What is the cost per unit transferred to finished goods inventory for each of the three binocular models in January?
dwig Uptical makes three models of binoculars: Travel, Sport, and Pro. The models differ by the size of the casing and the quality of the optics. The binoculars are produced in two departments. The Assembly Department purchases components from vendors and assembles them into binoculars. The Travel and Sport models are complete and ready for sale after completing the assembly process. The Pro model undergoes further processing in the Calibration Department, which is actually just a small area in the same building as the Assembly Department. Conversion costs in both the Assembly Department and Calibration Department are based on the number of units produced. There are never any work-in-process inventories. Data for production in January are shown in the following table: Units produced Materials cost Conversion costs Assembly Calibration Total conversion costs Total 34,000 $ 1,642,000 $ 440,000 44,400 $ 484,400 Travel Sport 12,750 17,000 4,250 $ 304,000 $ 861,500 $ 476,500 Pro Required: What is the cost per unit transferred to finished goods inventory for each of the three binocular models in January?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
Note:-
- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
- Answer completely.
- You will get up vote for sure.
Transcribed Image Text:Hedwig Optical makes three models of binoculars: Travel, Sport, and Pro. The models differ by the size of the casing and the quality of
the optics. The binoculars are produced in two departments. The Assembly Department purchases components from vendors and
assembles them into binoculars. The Travel and Sport models are complete and ready for sale after completing the assembly process.
The Pro model undergoes further processing in the Calibration Department, which is actually just a small area in the same building as
the Assembly Department.
Conversion costs in both the Assembly Department and Calibration Department are based on the number of units produced. There
are never any work-in-process inventories. Data for production in January are shown in the following table:
Units produced
Materials cost
Conversion costs
Assembly
Calibration
Total conversion costs
Travel
Sport
Pro
Total
Cost Per Unit
34,000
$ 1,642,000
$ 440,000
44,400
$ 484,400
Travel
Sport
12,750
17,000
4,250
$ 304,000 $ 861,500 $ 476,500
Required:
What is the cost per unit transferred to finished goods inventory for each of the three binocular models in January?
Note: Round your answers to 2 decimal places.
Pro
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education