Nihon, Inc. is a manufacturer of digital cameras. lt has two departments: assemb

Question

Nihon, Inc. is a manufacturer of digital cameras. lt has two departments: assembly and testing. In January 2014, the company incurred $825,000 on direct materials and $820,000 on conversion costs, for a total manufacturing cost of $1,645,000. Requirements 1. Assume there was no beginning inventory of any kind on January 1, 2014. During January. 20,000 cameras were placed into production and all 20,000 were fuy 2. Assume that during February 20,000 cameras are placed into production. Further assume the same total assembly costs for January are also incurred in completed at the end of the month. What is the unilt cost of an assembled camera in January? February, but only 15,000 cameras are fully completed at the end of the month. All direct materials have been added to the remaining 5,000 cameras. However on average, these remaining 5,000 cameras are only 5% complete as to conversion costs a what are the equivalent un s or rect materas an covers costs and their respective costs per equivalent unit for February? (b) What is the unit cost of an assembled camera in February 2014? 3. Explain the difference in your answers to requirements 1 and 2 Requirement 1. Assume there was no beginning inventory of any kind on January 1, 2014. During January, 20,000 cameras were placed into production and all 20,000 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 n Assembly department cost per unit Enter any number in the edit fields and then continue to the next question. Before you start, run the Browser Check to confirm that you have the plug-ins and players you need to Do assigned work to raise your scorel

Explanation / Answer

Requirement 1.

Requirement 2.

a.

b.

Unit cost of asembled camera in February = $84.98

Requirement 3.

The difference the asseby department cost per unit calculated in requirements 1 and 2 arises because the costs incurred in January and February are the same but less equivalent units of work are done in February relative to January.In January 20,000 units introduced are fully completed resulting in 20,000 equivalent units of work done with respect to convesrion cost. In February , of the 20,000 units introduced, 20,000 equivalent units of work is done with respect to materials, but only 75% equivalent units of work is done wit respect to conversion costs.The assemlby department cost per unit is therefore high.

Direct material cost per unit 41.25 (825000/20000) Conversion cost per unit 41.00 (820000/20000) Assembly department cost per unit 82.25

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.