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Equivalent units, zero beginning inventory. Candid, Inc., is a manufacturer of digital cameras. It has two departments:...

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Accounting

Equivalent units, zero beginning inventory.

Candid, Inc., is a manufacturer of digital cameras. Ithas two departments: assembly and testing. In January 2014, thecompany incurred $800,000 on direct materials and $805,000 onconversion costs, for a total manufacturing cost of $1,605,000. 1.Assume there was no beginning inventory of any kind on January 1,2014. During January, 5,000 cam-eras were placed into productionand all 5,000 were fully completed at the end of the month. What isthe unit cost of an assembled camera in January? 2. Assume thatduring February 5,000 cameras are placed into production. Furtherassume the same total assembly costs for January are also incurredin February, but only 4,000 cameras are fully com-pleted at the endof the month. All direct materials have been added to the remaining1,000 cameras. However, on average, these remaining 1,000 camerasare only 60% complete as to conversion costs. (a) What are theequivalent units for direct materials and conversion costs andtheir respective costs per equivalent unit for February? (b) Whatis the unit cost of an assembled camera in February 2014? 3.Explain the difference in your answers to requirements 1 and 2.

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