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This year Amber purchased a factory to process and package landscape mulch. Approximately 25 percent

This year Amber purchased a factory to process and package landscape mulch. Approximately 25 percent of management time, space, and expenses are spent on this manufacturing process. At the end of the year, Amber’s accountant indicated that the business had processed 10 million bags of mulch but only 1 million bags remained in the ending inventory. What is Amber’s tax basis in her ending inventory if the UNICAP rules are used to allocate indirect costs to inventory? (Assume direct costs are allocated to inventory according to the level of ending inventory. In contrast, indirect costs are first allocated by time spent and then according to level of ending inventory.) (Round your answers to 2 decimal places. Leave no answers blank. Enter zero if applicable)

Cost in thousands

Mulch & Packing 8,800

Administrative supplies 600

Factory Labor 21500

Sales and advertising 3400

administration 6700

Factory taxes 7900

Offices taxes 4000

Factory Depreciation 9500

Offices Depreciation 3100

Apr 04 2020 View more View Less

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