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Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $920. Selected data for the company’s operations last year follow:
Units in beginning inventory
0
Units produced
275
Units sold
260
Units in ending inventory
15
Variable costs per unit:
Direct materials
$
110
Direct labor
$
320
Variable manufacturing overhead
$
40
Variable selling and administrative
$
15
Fixed costs:
Fixed manufacturing overhead
$
77,000
Fixed selling and administrative
$
33,000
The absorption costing income statement prepared by the company’s accountant for last year appears below:
Sales
$
239,200
Cost of goods sold
195,000
Gross margin
44,200
Selling and administrative expense
36,900
Net operating income
$
7,300
Required:
Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year?
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