8. The Master Budget

A furniture maker has set the following budgeted Direct Labor Hours for the coming three months:

Each unit requires 2 boards of plywood that can be purchased for \$16 a piece. Moreover, each unit requires 5 hours of labor, and each worker is paid at the rate of \$15 per hour. Assuming a predetermined manufacturing overhead rate of \$2 per machine hour, calculate expected value of the ending finished goods inventory for the month of May. Assume that producing one unit requires 10 machine hours.