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:

Cost involved in production are:

Direct Material


Direct Labor


Variable manufacturing overhead


Total variable manufacturing costs per unit



Fixed manufacturing overhead per year



In addition, the company has fixed selling and administrativecosts:

Fixed selling costs per year


Fixed administrative costs per year



During the year, Xenoc produces 1,500 pairs of speakers andsells 1,200 pairs.


What is the value of ending inventory using full costing?