Question

need help with reuqirement two part a and part b

opartments ancora olmancung cost of $1,545,000 yand wang taon and engin January 2017, the company incurred 550.boo one Read the rements production and a 5.000 werely completed the end of the Requirement l What is the e there was no beginning inventory of any kind on January 1, 2017. During January 5.000 cameras were pla cost of an d came in any found you were the near Cent) cost per un 170.00 Direct Conversion cont per una Requirements that during February 5 000 cameras are placed in production. Further assume the same total assembly costs for January are also incurred in February, but only 3.000 cameras are fully com ed the end of the more All direct materials have been added to the remaining 2.000 cameras. However, on average, these remaining 2.000 cameras are only 60 complete as to conversion costs. (a) What are the equivalent unes for direct materials and conversion costs and the respective costs per equivalent unit for February? (b) What is the unit cost of an assembled camera in February 2017 (a) What are the equivalent unts for direct materials and conversion costs and the respective costs per equivalent unit for February? First calculate the equivalent units

Answer 1

1) Production report for the january month:
	Phy units	D. Material	Conversion cost	Total
Op WIP	0	0	0
Started and Completed	5000	5000	5000
Transferred out	5000
Cl WIP	0	0	0
Equivalent units		5000	5000
Cost of Eq unit		170	159	329
Cost of Transferred out		850000	795000	1645000
2) Production report for the february month:
	Phy units	D. Material	Conversion cost	Total
Op WIP	0	0	0
Started and Completed	3000	3000	3000
Transferred out	3000
Cl WIP	2000	2000	1200 (60%)
Equivalent units		5000	4200
Total Cost incurred		850000	795000	1645000
Cost per Eq. unit		170	189.29	359.29
3) The difference of the two answers are that during february there are work-in-process
at the end of month. Same amount of conversion cost is incurred but the equivalent
completed units are less for conversion cost unlike january, so the conversion cost
per unit is higher. So, the unit cost of assembled camera is higher at $359.29 in february
against $329 in january.