During its first year of operations, Carlos Manufacturing Corporation incurred the following costs to produce 8,000 units of its single product:

Direct materials	$7 per unit
Direct labour	$3 per unit
Variable manufacturing overhead	$18 per unit
Fixed manufacturing costs	$450,000 total

The company also incurred the following costs by selling 7,500 units of the product during its first year:

Variable selling and administration	$2 per unit
Fixed and administrative sales	$60,000 total

Assume that direct labor is a variable cost.

Based on absorption costing, what is the total cost that would be allocated to Carlos' finished goods inventory at the end of the first year of operations?

Answer rating: 100% (QA)

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