Answer:
Ending inventory= $240,840
Explanation:
Giving the following information:
Total variable manufacturing costs per unit $470
Fixed manufacturing overhead per year $679,420
During the year, Uli produces 1,610 pairs of speakers and sells 1,340 pairs.
The full costing method (absorption costing) includes all costs related to production, both fixed and variable. <u>The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead. </u>
F<u>irst, we need to calculate the total production cost:</u>
Total cost= 1,610*470 + 679,420
Total cost= $1,436,120
<u>Now, the unitary cost and ending inventory cost:</u>
Unitary cost= 1,436,120/1,610= $892
Ending inventory= $892*270 units
Ending inventory= $240,840
