Portrait, Inc. is a manufacturer of digital cameras. It has two departments: ass

Question

Portrait, Inc. is a manufacturer of digital cameras. It has two departments: assembly and testing. In January 2017, the company incurred $725,000 on direct materials and $805,000 on conversion costs, for a total manufacturing cost of $1,530,000 Read the requirements Requirement 1. Assume there was no beginning inventory of any kind on January 1, 2017. During January, 10,000 cameras were placed into production and all 10,000 were fully completed at the end of the month. What is the unit cost of an assembled camera in January? (Round your answers to the nearest cent.) Direct materials cost per unit Conversion cost per unit Assembly department cost per i

Explanation / Answer

Req1: Unit cost of Assembled Camera in Jan: Material cost per unit (725000/10000) 72.5 Conversion cost (805000/10000) 80.5 Assembly departmentt cost per unit 153 Req 2: Feb month UNITS TO BE ACCOUNTED FOR: Units started and completed 8,000 Ending Work in Process 2,000 Total Units to be accounted for: 10,000 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units started and completed 100% 8,000 100% 8,000 Ending Work in Process 100% 2,000 25% 500 Total Equivalent units 10,000 8,500 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 725,000 805,000 Equivalent Units 10,000 8,500 Cost per Equivalent unit 72.5 94.71 a. Equivalent units: Material 10000 units Conversion 8500 units b. Cost per Equivalent unit Material 72.5 Conversion 94.71 Unit cost per Assembled camera (72.5+94.71): 167.21 per unit Q3. The Difference is due to incomplete work on conversion cost. The conversion cost of $805000 which was applied to 10000 units arriving at a unit cost of $80.50 now, the same cost is for 8500 units, arriving at a unit cost of $94.71

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