Salem Company makes coat racks. The budgeted material cost of each unit is $6.75. The budgeted...
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Salem Company makes coat racks. The budgeted material cost of each unit is $6.75. The budgeted direct labor hours per unit is 0.25 hour, and the wage rate is $16 per direct labor hour. The budgeted variable overhead per unit is $1.25, and fixed overhead for the year is $1,650,000. During the year, 2,200,000 units were expected to be produced and 12,000 units were budgeted for ending finished goods inventory. Calculate the total ending inventory cost. Salem Company makes coat racks. The budgeted material cost of each unit is $6.75. The budgeted direct labor hours per unit is 0.25 hour, and the wage rate is $16 per direct labor hour. The budgeted variable overhead per unit is $1.25, and fixed overhead for the year is $1,650,000. During the year, 2,200,000 units were expected to be produced and 12,000 units were budgeted for ending finished goods inventory. Calculate the total ending inventory cost.
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