Answer:
1) Unit Costs= Total Costs/ No of Units= $ 321
2)The unit cost of an assembled camera in February 2014 $ 335
Explanation:
Candid, Inc.
Direct materials $800,000
Conversion costs, $805,000
Total manufacturing cost $1,605,000.
We find the unit costs by dividing the total cost with the number of units produced.
Units Produced 5,000
1) Unit Costs= Total Costs/ No of Units= $1,605,000 /5,000= $ 321
2) Particulars Units % of Completion Equivalent Units
D. Materials C.C D. Mat C. Costs
Production 4000 100 100 4000 4000
<u> Still in Process 1000 100 60 1000 600</u>
<u>Total Equivalent Units 5000 4600</u>
We find the number of Equivalent units to find the exact costs incurred.
Feb Equivalent units for direct materials = 5000
Feb Equivalent units for conversion costs = 4600
Direct materials costs per Equivalent units = $800,000 /5000= $160
Conversion costs per Equivalent units = $805,000/4600= $ 175
2-b) The unit cost of an assembled camera in February 2014= $160 + $ 175= $ 335
3) There is a difference in the unit costs of 1 and 2 because in situation 1 5000 units were completed and in situation 2 only 4600 units were completed with the same costs. There's a difference of $ 14 . The Feb costs are $ 14 more because of the difference in number of units.
