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 35,000 $ 1,645,000 Cost Per Unit $ 440,000 44,400 $ 484,400 Travel 17,500 $ 305,000 Sport 13,125 4,375 $ 862,500 $ 477,500 Pro 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. A
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 35,000 $ 1,645,000 Cost Per Unit $ 440,000 44,400 $ 484,400 Travel 17,500 $ 305,000 Sport 13,125 4,375 $ 862,500 $ 477,500 Pro 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. A
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![O
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
35,000
$ 1,645,000
Cost Per Unit
$ 440,000
44,400
$ 484,400
Travel
17,500
Sport
13,125
4,375
$ 305,000 $ 862,500 $ 477,500
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5dc68323-c81d-49c1-a558-b56ef33d41d7%2Ffa1d46ae-6205-492f-9232-75c300888376%2F5rk7q99_processed.jpeg&w=3840&q=75)
Transcribed Image Text:O
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
35,000
$ 1,645,000
Cost Per Unit
$ 440,000
44,400
$ 484,400
Travel
17,500
Sport
13,125
4,375
$ 305,000 $ 862,500 $ 477,500
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
![](/static/compass_v2/shared-icons/check-mark.png)
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
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education