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Posted: September 6th, 2024
Assume that the controller of ABC Corporation
Assume that the controller of ABC Corporation has determined that the company's ending inventory should be valued under code section 471 and related regulations at $132,000. The controller has also determined that ABC's actual overhead costs for the current year was $680,000. Assume that the controller has also determined that the following additional indirect costs are capitalizable under code section 263A and are not reflected in the $680,000 of code section 471 costs.Tax depreciation in excess of financial accounting depreciation $34,000Past service pension costs 31,000Insurance costs applicable to the factory 8,000Warehousing cost (wages, depreciation, insurance, and taxes) 21,000mixed service department costs (using the simplified service cost method) 8,000What is ABCâs ending inventory? Explain
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