Answer:
Cost of ending inventory =$15,000
Explanation:
Given:
Direct material = 90,000
beginning Inventory = 20,000
Completed Inventory = 60,000
Ending Inventory = 10,000
Total cost of direct materials = $135,000
Computation:
Cost of ending inventory = Ending Inventory × Per Item cost
Cost of ending inventory = 10,000 × $1.50
Cost of ending inventory =$15,000
Working Note:
Cost per unit = Cost of direct materials / Units in direct materials
Cost per unit = $135,000 / 90,000
Cost per unit = $1.50
