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:

Cost involved in production are:

Direct Material

$150

Direct Labor

200

Variable manufacturing overhead

100

Total variable manufacturing costs per unit

$450

 

Fixed manufacturing overhead per year

$600,000

 

In addition, the company has fixed selling and administrativecosts:

Fixed selling costs per year

$210,000

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?