Kildeer Company makes easels for artists. During the last calendar year, a total of 30,000 easels were made, and 31,000 were sold at $52 each. The actual unit cost is as follows:

- Direct Materials: $14.70
- Direct Labor: $5.80
- Variable Overhead: $3.25
- Fixed Overhead: $15.25
- Total Unit Cost: $39.00

The selling expenses consist of a commission of $1.30 per unit sold and advertising expenses totaling $95,000. Administrative expenses, all fixed, equaled $183,000. There were no beginning and ending work-in-progress inventories. The beginning finished goods inventory was $132,600 for 3,400 easels.

Calculate the number and the dollar value of easels in ending finished goods inventory.

The ending finished goods inventory for Kildeer Company contains 2,400 easels valued at $93,600. This is determined by subtracting the number of easels sold from the sum of the beginning inventory and easels produced, then multiplying the result by the unit production cost.

Explanation:

To calculate the number and dollar value of easels in ending finished goods inventory for Kildeer Company, we must consider the information given about production, sales, and inventory. Starting with a beginning finished goods inventory of 3,400 easels valued at $132,600, the company made 30,000 easels during the year and sold 31,000 easels. Since they ended up selling more easels than they produced, the ending inventory will be less than the beginning inventory by 1,000 units (31,000 sold - 30,000 made).

The ending finished goods inventory, in terms of the number of easels, can be calculated as follows:

Beginning Inventory: 3,400 easels
+ Produced Easels: 30,000 easels
- Sold Easels: 31,000 easels
= Ending Inventory: 2,400 easels

The cost to produce one easel has been provided as $39.00 per unit, which includes direct materials, direct labor, variable overhead, and fixed overhead costs. To calculate the dollar value of the 2,400 easels in the ending inventory, we multiply the number of units by the cost per unit:

2,400 easels x $39.00/easel = $93,600

Therefore, the ending finished goods inventory consists of 2,400 easels valued at $93,600.