XYZ Corporation produces 84,000 videophones per year. The company estimates its direct material costs for the videophone to be $310 per unit and its conversion (direct labor plus support) costs to be $460 per unit. Annual inventory carrying costs, not included in these costs, are estimated to be 12%. XYZ's average inventory levels are estimated as follows: (Click the icon to view the estimates.) Requirement Compute the annual inventory carrying costs for XYZ Corporation First calculate the inventory value, then calculate the annual inventory carrying costs Direct materials Work in process Finished goods Total inventory value