Reference no: EM132585652

Searaya processes boat hulls into four products. During January the joint costs of processing were $280,000. There was no beginning inventory at the beginning of the month. Production and sales value information for the month were as follows:

Sales Value at

Product        Hull Metres         Splitoff Point                  Ending Inventory

Hull 1           6,000,000             $0.30 per hullmetre   500,000 hullmetre

Hull 2             3,000,000           0.40 per hullmetre     250,000 hullmetre

Hull 3             2,000,000            0.45 per hullmetre     100,000 hullmetre

Hull 4             1,000,000              0.10 per hullmetre     50,000 hullmetre

Required:

Question 1: Determine the value of ending inventory if the sales value at splitoff method is used for product costing.