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 che 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 36,000 $ 1,648,000 Cost Per Unit $ 440,000 44,400 $ 484,400 Travel Sport 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. 18,000 13,500 4,500 $ 306,000 $ 863,500 $ 478,500

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Chapter1: Financial Statements And Business Decisions
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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
36,000
$ 1,648,000
$ 440,000
44,400
$ 484,400
Travel
Sport
13,500
Pro
4,500
18,000
$ 306,000 $ 863,500 $ 478,500
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.
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 36,000 $ 1,648,000 $ 440,000 44,400 $ 484,400 Travel Sport 13,500 Pro 4,500 18,000 $ 306,000 $ 863,500 $ 478,500 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.
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