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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

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 Flannigans first month of operations; and, therefore, there was no beginning inventory. Direct materials cost for the month totaled $1,200,000, while conversion cost 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:

Allocate the total costs between the completed parts and the parts in ending inventory.

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