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:
|
Product |
Board feet |
Sales Value at Split off 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. |
Question: Determine the value of ending inventory if the sales value at splitoff method is used for product costing. Round to three decimal places when necessary.