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:
|
|
|
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.