The Flannigan Factory Was Recently Formed to Product a Specialized

question 60

Essay

The Flannigan Factory was recently formed to product a specialized part that forms and essential part to go on a refrigerator.The direct materials are added at the start of the production process while conversion costs are added uniformly throughout the production process.December is Flannigan's first month of operations;and,therefore,there was no beginning inventory.Direct materials cost for the month totaled $1,200,000,while conversion costs equaled $1,600,000.The accounting records indicate that 500,000 parts were started in December and 400,000 parts were completed.
Ending inventory was 30% complete as to conversion costs.
Required:
a.What is the total manufacturing cost per part for December?
b.Allocate the total costs between the completed parts and the parts in ending inventory.