UMB Tech, Inc., is a manufacturer of smart phone. It has two departments: assembly and...
70.2K
Verified Solution
Link Copied!
Question
Accounting
UMB Tech, Inc., is a manufacturer of smart phone. It has two departments: assembly and testing. In January 2020, the company incurred $750,000 on direct materials and $798,000 on conversion costs, for a total manufacturing cost of $1,548,000.
a. Assume there was no beginning inventory of any kind on January 1, 2020. During January, 10,000 smart phones were placed into production and all 10,000 were fully completed at the end of the month. What is the unit cost of an assembled smart phone in January?
b. Assume that, during February 2020, 10, 000 smart phones are placed into production. Further assume the same total assembly costs for January are also incurred in February, but only 9,000 smart phones are fully completed at the end of the month. All direct materials have been added to the remaining 1,000 smart phones. However, on average, these remaining 1,000 smart phones are only 25% complete as to conversion costs.
(a) What are the equivalent units for direct materials and conversion costs and their respective costs per equivalent unit for February 2020?
(b) What is the unit cost of an assembled smart phone in February 2020?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
