Question

Equivalent units, zero beginning inventory. Candid, Inc. is a manufacturer of digital cameras. It has two departments: assembly and testing. In January 2017, the company incurred $800,000 on direct materials and $805,000 on conversion costs, for a total manufacturing cost of $1,605,000. 1. Assume there was no beginning inventory of any kind on January 1, 2017. During January, 5,000 cameras were placed into production and all 5,000 were fully completed at the end of the month. What is the unit cost of an assembled camera in January

Answer 1

Answer:

$321

Explanation:

Given that;

Direct materials = $800,000

Conversion cost = $805,000

Total manufacturing cost = $1,605,000

Units produced = 5,000

We will get the unit cost by dividing the total cost with the number of units produced.

Therefore,

Units cost = Total cost / Number of units

Unit cost = $1,605,000 / 5,000

Unit cost = $321