Question
EX 5.4. Xenoc, Inc., produces stereo speakers.The selling price per pair of speakers is $1,800. There is nobeginning inventory.
Costs involved in production are:
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Cost involved in production are: |
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Direct Material |
$150 |
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Direct Labor |
200 |
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Variable manufacturing overhead |
100 |
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Total variable manufacturing costs per unit |
$450 |
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|
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Fixed manufacturing overhead per year |
$600,000 |
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In addition, the company has fixed selling and administrativecosts: |
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Fixed selling costs per year |
$210,000 |
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Fixed administrative costs per year |
$110,00 |
During the year, Xenoc produces 1,500 pairs of speakers andsells 1,200 pairs.
Required
What is the value of ending inventory using full costing?
