Question

Panoramic​, Inc. is a manufacturer of digital cameras. It has two​ departments: assembly and testing. In January 2017​, the company incurred $ 780 comma 000 on direct materials and $ 790 comma 000 on conversion​ costs, for a total manufacturing cost of $ 1 comma 570 comma 000. Read the requirementsLOADING....

Requirement 1. Assume there was no beginning inventory of any kind on January​ 1, 2017. During​ January, 20 comma 000 cameras were placed into production and all 20 comma 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 Assembly department cost per unit

Answer 1

Material unit cost 39

Conversion unit cost 39.5

Total unit cost 78.5

Step-by-step explanation:

As we complete the entire started production and, thre is neither a beginning nor ending WIP we simply divide the cost added over the trasnferred unit:

Materials

$ 780,000 / 20,000 units = $ 39

Conversion

$ 790,000 / 20,000 units = $ 39.5

Total unit cost: 39 + 39.5 = $ 78.5

Answer 2

The unit cost of an assembled camera in​ January= $78.5

Direct materials cost per unit $39

Conversion cost per unit $ 39.5

Assembly department cost per unit $ 78.5

Step-by-step explanation:

Direct Materials $ 780, 000

Conversion​ Costs $ 790, 000

Total Manufacturing Cost $ 1,570,000

Direct Materials per unit = $ 780, 000/ 20,000= $39

Conversion​ Costs per unit= $ 790, 000/20,000= $39.5

Total Manufacturing Cost per unit= $ 1,570,000/ 20000= $78.5

The unit cost of an assembled camera in​ January= $78.5

Direct materials cost per unit $39

Conversion cost per unit $ 39.5

Assembly department cost per unit $ 78.5