Check that I performed this correctly. My Contribution Margin Statement is attached. If I'm incorrect, please offer some coaching.

The Jarvis Company Manufactures and markets a single product. The following data are available:

In 20_5, variable manufacturing costs were $3 per unit.

The standard production rate is 10 units per machine hour; that is, each unit takes 0.1 hours. The company produced 550,000 units during the year.

Total fixed manufacturing costs were $440,000. Fixed manufacturing overhead was allocated using 55,000 machine hours as the basis.

The selling price is $5 per unit.

Variable marketing and administrative costs, which are driven by units sold, were $1 per unit. Fixed marketing and administrative costs were $120,000.

Sales in 20_5 were 540,000 units.

1.Attached is a contribution-margin based income statement. What is the value of the inventory of finished goods under this approach?

Value of finished goods = $105,000

Sales Revenue Variable Cost Contribution Margin Fixed Cost Net Operating Profit 540,000 Units $2,700,000 $2,190,000 $510,000 $615,000 ($105,000)