Rigney Corporation manufactures two models of travel alarms, the M 24 and the D 12, which differ only in the quality of plastic used for the cases. Production takes place in two departments, Manufacturing and Finishing. Data for the only two work orders for February are shown in the following table. Conversion costs are allocated based on the number of units produced. There are no work in process inventories.
|
Materials |
Total |
M 24 (5,000 units) |
D 12 (9,000 units) |
|
Manufacturing |
$42,500 |
$20,000 |
$22,500 |
|
Conversion costs |
|
|
|
|
Manufacturing |
42,000 |
|
|
|
Finishing |
21,000 |
|
|
|
Total conversion cost |
$63,000 |
|
|
What is the cost per unit transferred to finished goods inventory for the two models, M 24 and D 12, in February?