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 | Split-off Point | Ending Inventory |
2 × 4's | 6,000,000 | $0.30 per board foot | 500,000 bdft. |
2 × 6's | 3,000,000 | 0.40 per board foot | 250,000 bdft. |
4 × 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 split-off method is used for product costing. Round to 3 decimal places when necessary.