Question
Preparing an Ending Finished Goods Inventory Budget Andrews Company manufactures a line of office chairs. Each chair takes $12 of direct materials and uses 1.9
Preparing an Ending Finished Goods Inventory Budget
Andrews Company manufactures a line of office chairs. Each chair takes $12 of direct materials and uses 1.9 direct labor hours at $14 per direct labor hour. The variable overhead rate is $1.30 per direct labor hour, and the fixed overhead rate is $1.30 per direct labor hour. Andrews expects to have 650 chairs in ending inventory. There is no beginning inventory of office chairs.
Required:
1. Calculate the unit product cost. Round your answer to the nearest cent.
2. Calculate the cost of budgeted ending inventory.
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