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LUV Corporation produces 36,000 videophones per year. The company estimates its direct material costs for the videophone to be $ 220 per unit and its
LUV Corporation produces 36,000 videophones per year. The company estimates its direct material costs for the videophone to be $ 220 per unit and its conversion (direct labor plus support) costs to be $330 per unit. Annual inventory carrying costs, not included in these costs, are estimated to be 8%, LUV's average inventory levels are estimated as follows; (Click the icon to view the estimates.) Requirement Compute the annual inventory carrying costs for LUV Corporation. First calculate the inventory, then men calculate the annual inventory carrying costs. Direct materials Work in process Finished goods Total inventory value Enter any number in the edit fields and then click Check
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