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Midnight Kitchenware produces high-end blenders for commercial kitchens. They have the following information available about their inventory levels at the end of 2014:
Materials: $40,000 4,000lbs. WIP: $0 Finished Goods: $69,000 800 units
Midnight is preparing a budget for 2014, and makes the following assumptions:
9,000 units will be sold 5lbs of material is needed to produce each unit Material costs $12 per pound 0.5 hrs of labor needed to produce each unit Labor costs are $24 per hour Overhead applied at a rate of $20 per labor hour 5000 lbs. of material to be left in inventoryNo ending balance in WIP1,000 units to be left in finished goods
Midnight uses the FIFO system for valuing its inventory.
Calculate the following:
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