Hedwig Optical makes three models of binoculars: Travel, Sport, and Pro. The models differ by the size of the casing and the quality of the optics. The binoculars are produced in two departments. The Assembly Department purchases components from vendors and assembles them into binoculars. The Travel and Sport models are complete and ready for sale after completing the assembly process. The Pro model undergoes further processing in the Calibration Department, which is actually just a small area in the same building as the Assembly Department. Conversion costs in both the Assembly Department and Calibration Department are based on the number of units produced. There are never any work-in-process inventories. Data for production in January are shown in the following table: Units produced Materials cost Conversion costs Assembly Calibration Total conversion costs Travel Sport Pro Total 35,000 $ 1,645,000 Cost Per Unit $ 440,000 44,400 $ 484,400 Travel 17,500 $ 305,000 Sport 13,125 4,375 $ 862,500 $ 477,500 Pro Required: What is the cost per unit transferred to finished goods inventory for each of the three binocular models in January? Note: Round your answers to 2 decimal places. A

Hedwig Optical makes three models of binoculars: Travel, Sport, and Pro. The models differ by the size of the casing and the quality of the optics. The binoculars are produced in two departments. The Assembly Department purchases components from vendors and assembles them into binoculars. The Travel and Sport models are complete and ready for sale after completing the assembly process. The Pro model undergoes further processing in the Calibration Department, which is actually just a small area in the same building as the Assembly Department. Conversion costs in both the Assembly Department and Calibration Department are based on the number of units produced. There are never any work-in-process inventories. Data for production in January are shown in the following table: Units produced Materials cost Conversion costs Assembly Calibration Total conversion costs Travel Sport Pro Total 35,000 $ 1,645,000 Cost Per Unit $ 440,000 44,400 $ 484,400 Travel 17,500 $ 305,000 Sport 13,125 4,375 $ 862,500 $ 477,500 Pro Required: What is the cost per unit transferred to finished goods inventory for each of the three binocular models in January? Note: Round your answers to 2 decimal places. A

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Hedwig Optical makes three models of binoculars: Travel, Sport, and Pro. The models differ by the size of the casing and the quality of the optics. The binoculars are produced in two departments. The Assembly Department purchases components from vendors and assembles them into binoculars. The Travel and Sport models are complete and ready for sale after completing the assembly process. The Pro model undergoes further processing in the Calibration Department, which is actually just a small area in the same building as the Assembly Department. Conversion costs in both the Assembly Department and Calibration Department are based on the number of units produced. There are never any work-in-process inventories. Data for production in January are shown in the following table: Units produced Materials cost Conversion costs Assembly Calibration Total conversion costs Travel Sport Pro Total Cost Per Unit 36,000 $ 1,648,000 $ 440,000 44,400 $ 484,400 Travel Sport 13,500 Pro 4,500 18,000 $…
Coastal Cycles makes three models of electric bicycles: E20, E35, and E60. The models differ by the size of the battery and the quality of the components. The bicycles are produced in two departments. The Assembly Department purchases components from vendors and assembles them into bicycles. The models E20 and E35 are complete and ready for sale after completing the assembly process. The model E60 undergoes further process in Customization Department, which is actually just a small area in the same building as the Assembly Department. Conversion costs in both the Assembly Department and Customization Department are based on the number of units produced. There are never any work-in-process inventories. Data for production in November are shown in the following table. Total E20 E35 E60 Units produced 13,000 5,000 4,500 3,500 Materials cost $ 9,820,000 $ 2,500,000 $ 3,420,000 $ 3,900,000 Conversion costs Assembly…
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Coastal Cycles makes three models of electric bicycles: E20, E35, and E60. The models differ by the size of the battery and the quality of the components. The bicycles are produced in two departments. The Assembly Department purchases components from vendors and assembles them into bicycles. The models E20 and E35 are complete and ready for sale after completing the assembly process. The model E60 undergoes further process in Customization Department, which is actually just a small area in the same building as the Assembly Department. Conversion costs in both the Assembly Department and Customization Department are based on the number of units produced. There are never any work-in-process inventories. Data for production in November are shown in the following table. Total E20 E35 E60 Units produced 11,500 4,500 4,000 3,000 Materials cost $ 8,395,000 $ 2,250,000 $ 2,845,000 $ 3,300,000 Conversion costs…
Washington, Inc., makes three models of motorized carts for vacation resorts, X-10, X-20, and X-40. Washington manufactures the carts in two assembly departments: Department A and Department B. All three models are processed initially in Department A, where all material is assembled. The X-10 model is then transferred to finished goods. After processing in Department A, the X-20 and X-40 models are transferred to Department B for final assembly, and then transferred to finished goods.There were no beginning work-in-process inventories on April 1. Data for April are shown in the following table. Ending work in process is 20 percent complete in Department A and 60 percent complete in Department B. Conversion costs are allocated based on the number of equivalent units processed in each department. Total X-10 X-20 X-40 Units started 510 390 270 Units completed in Department A 440 250 180 Units completed in Department B 225…
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Clearview Window Company manufactures windows for the home-building industry. The window frames are produced in the Frame Division. The frames are then transferred to the Glass Division, where the glass and hardware are installed. The company’s best-selling product is a three-by-four-foot, doublepaned operable window. The Frame Division also can sell frames directly to custom home builders, who install the glass and hardware. The sales price for a frame is $80. The Glass Division sells its finished windows for $190. The markets for both frames and finished windows exhibit perfect competition. The standard variable cost of the window is detailed as follows: Frame Division Glass Division Direct material $ 15 $ 30 * Direct labor 20 15 Variable overhead 30 30 Total $ 65 $ 75 *Not including the transfer price for the frame. Assume that there is no excess capacity in the Frame Division. Required: 1-a. Use the general rule to compute the transfer price for window frames. 1-b. Calculate the…
Devereaux Cycles makes three models of scooter: Commuter, Sport, and X-treme. The scooters are produced in four departments: Assembly, Detailing, Customization, and Packaging. All three models are started in Assembly, where all materials are assembled. The Commuter is then sent to Packaging, where it is packaged and transferred to finished goods inventory. The Sport is then transferred to Detailing. Once the detailing process is completed, the Sport models are transferred to Packaging and then finished goods. The X- Treme model is assembled and then transferred to Customization, and then Packaging. When packaged, it is transferred to finished goods. Data for February are shown in the following table. Conversion costs are allocated based on the number of units processed in each department. No work-in-process inventories are maintained in any department. Materials Conversion costs: Assembly Detailing Customization Packaging Total conversion costs Commuter Sport X-Treme Total $ 3,694,000…
Watertime inc. manufactures old fashioned grandfather clocks. The production utilizes a highly automated assembly line. The firm has identified two cost categories: direct materials and conversion costs. During the production process each clock moves first through the Assembly Department, where materials are added and the clock is assembled, then through the Testing Department, where the clock is inspected for quality control. All direct materials are added at the beginning of the production process but conversion costs are allocated evenly throughout production. Spartans Inc. uses weighted-average costing. Data for Department A for June 2020 are: Beginning WiP Inventory 320 units Direct Materials (100% complete) Conversion (35% complete) Units started during June 750 units Ending WiP Inventory June 30 300 units Direct…
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Miller Outdoor Equipment (MOE) makes four models of tents. The model names are Rookie, Novice, Hiker, and Expert. MOE manufactures the tents in two departments: Stitching and Customizing. All four models are processed initially in Stitching where all material is assembled and sewn into a basic tent. The Rookie model is then transferred to finished goods. After processing in Stitching, the other three models are transferred to Customizing for additional add-ons, and then transferred to finished goods. There were no beginning work-in-process inventories on August 1. Data for August are shown in the following table. Ending work in process is 45 percent complete in Stitching and 40 percent complete in Customizing. Conversion costs are allocated based on the number of equivalent units processed in each department. Total Rookie Novice Hiker Expert Units started 710 550 330 230 Units completed in Stitching Units completed in Customizing Materials 645 490 280 185 465 255 165 $69,360 $25,560…
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