Joe Barker is the production manager of Auto Parts Company $($APC$)$ and has been asked to prepare $2020\text{'}$s ending finished goods budget for the S$222$ product.

Based on historical figures, Joe determines the following information regarding direct materials, direct labor and manufacturing overhead for the S$222$ product.

Direct Materials Costs per Unit $$1\mathrm{.}10$ per unit

Direct Labor Cost per Direct Labor Hour $($DLH$)$ $$15$ per DLH

DLH per Unit $0\mathrm{.}25$ DLH per unit

Predetermined Manufacturing Overhead Rate $$4$ per DLH

Assume APC targets $5,000$ units of S$222$ for ending inventory at the end of $2020.$

Calculate the value of S$222$ inventory that will be recorded in $2020\text{'}$s budgeted balance sheet.

Answer rating: 100% (QA)

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