Brandon's Boards makes reasonably high-end skateboards which sell for $500 each. The production process is fairly simple and involves assembling components purchased from various suppliers. Since each skateboard only takes two hours to assemble, there is essentially no work-in-process inventory. Brandon's Boards has the capacity to make 700 skateboards per year. Costs for the skateboard components are: Deck $45.00 Trucks Wheels Bearings Bolts, etc. Hardware package - net $50,00 40.00 30.00 10.00 130.00 Total $175.00 Each board should take two hours of direct labor to assemble. Direct labor wages are $54 per hour. Other indirect manufacturing costs on a monthly basis are budgeted to be: Rent $2,800.00 Insurance 508.80 Utilities 200.00 Miscellaneous 500.00 $4,008.80 Inventory balances are as follows (Brandon's uses FIFO inventory cost flow assumption): Units Dollars Decks 1/1/2021 350 $15,750 12/31/2021 360