This year Amber opened a factory to process and package landscape mulch. At the end of the year, Ambers accountant prepared the following schedule for allocating manufacturing costs to the mulch inventory, but her accountant is unsure of what costs need to be allocated to the inventory under UNICAP. Approximately 15 percent of management time, space, and expenses are spent on this manufacturing process. At the end of the year, Ambers accountant indicated that the business had processed 14,300 bags of mulch but only 1,430 bags remained in the ending inventory.

What is Ambers tax basis in her ending inventory after applying the UNICAP rules to allocate indirect costs to inventory? (Assume direct costs are allocated to inventory according to the level of ending inventory. In contrast, indirect costs are first allocated by time spent and then according to level of ending inventory.) (Round your answers to 2 decimal places. Leave no answers blank. Enter zero if applicable.)

Material:

Mulch and packaging $6,800

Administrative supplies 480

Salaries:

Factory labor 14,800

Sales & advertising 3,900

Administration 8,800

Property taxes:

Factory 8,400

Offices 3,200

Depreciation:

Factory 9,750

Offices 2,600