Q1) Dollar value of ending inventory utilizing full costing will be?
Williams Company presently manufactures 20,000 units of part B13. Present costs for part B13 are as follows:
| Direct materials |
$12 |
| Direct labor |
9 |
| Factory rent |
7 |
| Administrative |
6 |
| General factory overhead |
7 |
| Total |
$41 |
If company makes decision to purchase part B13, 50% of administrative costs would be avoided. All the Williams Company items (including this part) are produced in same rented production facility.