During 2022, its first year of operations, ABC Company produced 15,000
units and sold 13,000 units. During 2023, ABC Company produced 26,000
units and sold 17,000 units. The following information was taken from
ABC's accounting records for 2022 and 2023:
Direct materials cost per unit
Direct labor cost per unit
Variable overhead cost per unit
Variable selling & admin cost per unit
Fixed overhead (total cost)
Fixed selling & admin (total cost)
2022
2023
$8
$9
$5
$7
$3
$5
$2
$2
$162,000
$169,000
$117,000
$117,000
Assume the selling price of ABC Company's product was $42 per unit for
both years.
Calculate the dollar amount of ABC Company's finished goods inventory
that would appear on the December 31, 2022 balance sheet using absorption
costing.
