ABC Corporation produces 96,000 videophones per year. The company estimates its direct material costs for the videophone to be $310 per unit and its conversion (direct labor plus support) costs to be $320 per unit. Annual inventory carrying costs, not included in these costs, are estimated to be 9%. ABC's average inventory levels are estimated as follows: (Click the icon to view the estimates.) Requirement Compute the annual inventory carrying costs for ABC Corporation First calculate the inventory value, then calculate the annual inventory carrying costs Direct materials Work in process Finished goods Data Table Total inventory value Direct material Work in process (100% complete for materials 3 months of production 3 months of production and 50% for conversion) Finished goods 1 month of production PrintDone ABC Corporation produces 96,000 videophones per year. The company estimates its direct material costs for the videophone to be $310 per unit and its conversion (direct labor plus support) costs to be $320 per unit. Annual inventory carrying costs, not included in these costs, are estimated to be 9%. ABC's average inventory levels are estimated as follows: (Click the icon to view the estimates.) Requirement Compute the annual inventory carrying costs for ABC Corporation First calculate the inventory value, then calculate the annual inventory carrying costs Direct materials Work in process Finished goods Data Table Total inventory value Direct material Work in process (100% complete for materials 3 months of production 3 months of production and 50% for conversion) Finished goods 1 month of production PrintDone