Required: 1. Assume there was no beginning inventory of any kind on January 1, 2017. 5,000 cameras were placed into production and all 5,000 were fully com of the month. What is the unit cost of an assembled camera in January? 2. Assume that during February 5,000 cameras are placed into production. Fu same total assembly costs for January are also incurred in February, but on are fully completed at the end of the month. All direct materials have been remaining 1,000 cameras. However, on average, these remaining 1,000 car 60% complete as to conversion costs. (a) What are the equivalent units for

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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?
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
60% 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?
3. Explain the difference in vour answers to requirements 1 and 2.
Transcribed Image Text:Required: 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? 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 60% 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? 3. Explain the difference in vour answers to requirements 1 and 2.
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