Brandon's Boards makes reasonably high-end skateboards which sell for $600 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 Trucks Wheels Bearings $60.00 $50.00 40.00 35.00 15.00 140.00 Bolts, etc. Hardware package - net Total $200.00 Each board should take two hours of direct labor to assemble. Direct labor wages are $60 per hour. Other indirect manufacturing costs on a monthly basis are budgeted to be: Rent Insurance Utilities Miscellaneous $3,000 500 200 300 $4,000 Inventory balances are as follows (Brandon's uses FIFO inventory cost flow assumption): Units Dollars Decks 1/1/2022 350 $17,500 12/31/2022 360 < Budgeted Hardware Package 1/1/2022 360 $50,400 12/31/2022 370 < Budgeted Finished skateboards 1/1/2022 300 $112,500 12/31/2022 316 < Budgeted