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 30 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 12,200 bags of mulch but only 1,220 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.)

		Costs	Tax Inventory
Material:	Mulch and packaging	$5,300
	Administrative supplies	270
Salaries:	Factory labor	18,100
	Sales & advertising	6,250
	Administration	5,500
Property taxes:	Factory	7,400
	Offices	2,800
Depreciation:	Factory	11,800
	Offices	1,800
	Total