Grin Company manufactures digital cameras. In January, Grin produced 2,500 camer

ID: 2328077 • Letter: G

Question

Grin Company manufactures digital cameras. In January, Grin produced 2,500 cameras with the following costs:

There were no beginning or ending inventories of WIP.

Required:

If required, round your answers to the nearest cent.

1. What was the total prime cost in January?
$

2. What was the prime cost per unit in January?
$per unit

3. What was the total conversion cost in January?
$

4. What was the conversion cost per unit in January?
$per unit

Direct materials $560,000 Direct labor 80,000 Manufacturing overhead 384,000

1)Prime cost= Direct Material cost+ Direct Labor Cost

=$560,000+$ 80,000

So Prime cost is $ 640,000.

2)Prime cost per unit = $ 640,000/2500

= $ 256

3)Conversion cost= Direct labor cost+ Manufacturing overhead

$80,000+ $ 384,000

So conversion cost is $ 464,000

4.Conversion cost per unit = $ 185.60

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