The accounting firm of Smith, Melodia, Soldano, and Michaels was asked by Daniel, Incorporated, to determine the value of its inventory. The company produces a line of two-piece bathing suits.

In the month of July the company made 90,000 suits. It was a warm month, so sales increased 20% from June (June sales were 50,000). Costs per suit for the 90,000 suits were 

The ending inventory was 30,000 suits. The CPA firm used direct costing to value the inventory. nju4 Required:
Compute the value of the ending inventory.

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Direct materials. $4.00 Direct labor.... 2.00 Variable factory overhead. 1.00 Fixed factory overhead 1.50