The budget for Blu Studio is for 30,000 units of product Z to be produced for the period. The standard cost of each unit is as follows:

Direct material $4.50

Direct labour $1.50

Fixed overhead $3.00

9.00

The standard selling price is $15.00

Actual sales 28,000

Actual production (as budgeted) 30,000

Required: Assuming the firm uses the absorption costing system, determine the closing inventory at the end of the period. CLO3