Question
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started