(Answered) Problem - the jarvis company manufactures and markets a

Accounting

Problem - The Jarvis Company Manufactures and markets a single product. The following data are available:

In 20_5, variable manufacturing costs were $3 per unit.
The standard production rate is 10 units per machine hour; that is, each unit takes 0.1 hours. The company produced 550,000 units during the year.
Total fixed manufacturing costs were $440,000. Fixed manufacturing overhead was allocated using 55,000 machine hours as the basis.
The selling price is $5 per unit.
Variable marketing and administrative costs, which are driven by units sold, were $1 per unit. Fixed marketing and administrative costs were $120,000.
Sales in 20_5 were 540,000 units.

Gross Margin Statement
Revenues	$2,700,000
Costs	$2,090,000
Gross Margin	$610,000
Mgmt, Marketing	$660,000
Profit Before taxes	($50,000)

Gross-margin based income statement (income statement as would be prepared under GAAP) to compute the income before taxes for 20_5. What is the value of the inventory of finished goods under this approach?

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