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This year Amber opened a factory to process and packagelandscape mulch. At the end of the year, Amber’s accountantprepared the following schedule for allocating manufacturing coststo the mulch inventory, but her accountant is unsure of what costsneed to be allocated to the inventory under UNICAP rules.Approximately 20 percent of management time, space, and expensesare spent on this manufacturing process. At the end of the year,Amber’s accountant indicated that the business had processed 10,600bags of mulch but only 2,120 bags remained in the endinginventory.What is Amber’s tax basis in her ending inventory after applyingthe UNICAP rules to allocate indirect costs to inventory? (Assumedirect costs are allocated to inventory according to the level ofending inventory. In contrast, indirect costs are first allocatedby time spent and then according to level of ending inventory.CostsTax InventoryMaterial:Mulch and packaging$8,200Administrative supplies650Salaries:Factory labor12,700Sales & advertising5,150Administration5,950Property taxes:Factory9,000Offices5,000Depreciation:Factory12,200Offices3,800Total$0.00