SnapshotSnapshot, Inc. is a manufacturer of digital cameras. It has two departments: assembly and testing. In January
the company incurred
on direct materials and
on conversion costs, for a total manufacturing cost of
|1.||Assume there was no beginning inventory of any kind on January 1,2014.
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 February5,000
cameras are placed into production. Further assume the same total assembly costs for January are also incurred in February, but only4,000
cameras are fully completed at the end of the month. All direct materials have been added to the remaining1,000
cameras. However, on average, these remaining1,000
cameras are only25%
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 February2014?
|3.||Explain the difference in your answers to requirements 1 and 2.|