Q. Oregon Lumber processes timber into four products. During January, the joint costs of processing were $280,000. There was no inventory at the beginning of the month. Production and sales value information for the month is as follows: (2 marks)

Sales Value at

Product Board feet Splitoff Point Ending Inventory

2 x 4's 6,000,000 $0.30 per board foot 500,000 bdft.

2 x 6's 3,000,000 0.40 per board foot 250,000 bdft.

4 x 4's 2,000,000 0.45 per board foot 100,000 bdft.

Slabs 1,000,000 0.10 per board foot 50,000 bdft.

Required:

Determine the value of ending inventory if the sales value at splitoff method is used for product costing. Round to 3 decimal places when necessary.

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