Reference no: EM132831105

The P. Talbot Company was organized just one month ago. The company manufactures and sells a unique product that has been quickly accepted by consumers.

The results of the company's first month of operations are shown below (absorption costing basis):

Sales (10,000 units @ $20) $200,000
Less Cost of Goods Sold 140,000
Gross Margin 60,000
Less Selling and Administrative expenses 45,000
Net Income $15,000

Variable selling and administrative expenses are $2 per unit. The company produced 12,000 units during the month. Variable manufacturing costs total $10 per unit, and fixed manufacturing overhead costs total $48,000 per month.

Problem a) What is the ending inventory value using full-absorption costing