RECOMMENDED!!ACCTMIS 2300-During 2018, its first year of operations

  

During 2018, its first year of operations, XYZ Company produced 20,000
units and sold 14,000 units. During 2019, XYZ Company produced 24,000
units and sold 27,000 units. The following information was taken from
XYZ’s accounting records for 2018 and 2019:

2018 2019
Direct materials cost per unit ………… $18 $19
Direct labor cost per unit ……………. $21 $25
Variable overhead cost per unit ……….. $10 $13
Variable selling & admin cost per unit …. $6 $6
Fixed overhead (total cost) …………… $120,000 $168,000
Fixed selling & admin (total cost) …….. $126,000 $135,000

Assume the selling price of XYZ Company’s product was $85 per unit for
both years.

Calculate the dollar amount of XYZ Company’s finished goods inventory
that would appear on the December 31, 2018 balance sheet using

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