Oregon Lumber processes timber into four products. During January, the joint costs of processing…

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

Sales Value at Split off Point

Ending Inventory

2 x 4's

6,000,000

0.30 per board foot

500,000 bdft.

2 x 6's

3,000,000

0.40 per board foot

250,000 bdft.

4 x 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.

Question: Determine the value of ending inventory if the sales value at splitoff method is used for product costing. Round to three decimal places when necessary.

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