Answer:
b. $132,000
Step-by-step explanation:
Given the following information,
Direct materials $160,000
Direct labor $150,000
Manufacturing overhead applied $130,000
Units produced 4,000 units
Units sold 2,800 units
We need to calculate the total cost first.
Total cost = $160,000 + $150,000 + $130,000
Total cost = $440,000
We will also calculate the unitary cost
Unitary cost = $440,000 / 4,000
Unitary cost = $110.
Therefore, the final ending inventory would be;
Ending inventory = *1,200 × $110
Ending inventory = $132,000
• Note : 1,200 is derived by [ 4,000 units - 2,800 units]