Panagra, Inc. manufactures digital cameras. It has two departments: assembly and testing. In January 2020, the company incurred $775,000 on direct materials and $816,000 on conversion costs, for a total manufacturing cost of $1,591,000. Read the requirements. Requirement 1. Assume there was no beginning inventory of any kind on January 1, 2020. 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.) Requirements Direct materials cost per unit Conversion cost per unit Assembly department cost per unit C... 1. Assume there was no beginning inventory of any kind on January 1, 2020. 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? 2. Assume that during February 10,000 cameras are placed into production. Further assume the same total assembly costs for January are also incurred February, but only 9,000 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 cameras in February 2020? 3. Explain the difference in your answers to requirements 1 and 2. X
Panagra, Inc. manufactures digital cameras. It has two departments: assembly and testing. In January 2020, the company incurred $775,000 on direct materials and $816,000 on conversion costs, for a total manufacturing cost of $1,591,000. Read the requirements. Requirement 1. Assume there was no beginning inventory of any kind on January 1, 2020. 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.) Requirements Direct materials cost per unit Conversion cost per unit Assembly department cost per unit C... 1. Assume there was no beginning inventory of any kind on January 1, 2020. 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? 2. Assume that during February 10,000 cameras are placed into production. Further assume the same total assembly costs for January are also incurred February, but only 9,000 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 cameras in February 2020? 3. Explain the difference in your answers to requirements 1 and 2. X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Panagra, Inc. manufactures digital cameras. It has two departments: assembly and testing. In January 2020, the company incurred $775,000 on direct materials and $816,000 on conversion costs, for a total
manufacturing cost of $1,591,000.
Read the requirements.
Requirement 1. Assume there was no beginning inventory of any kind on January 1, 2020. 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.)
Requirements
Direct materials cost per unit
Conversion cost per unit
Assembly department cost per unit
1.
2.
3.
Assume there was no beginning inventory of any kind on January 1, 2020.
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?
Assume that during February 10,000 cameras are placed into production.
Further assume the same total assembly costs for January are also incurred
in February, but only 9,000 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
cameras in February 2020?
Explain the difference in your answers to requirements 1 and 2.
-
X
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