Bourne Crafts Manufactures Specialty Key Chains for Tourist Attractions

Essay

Bourne Crafts manufactures specialty key chains for tourist attractions. On January 1, the firm had 200 souvenir attraction disks used in the production of the chains that cost $3 each; and 600 completed key chains that cost $6 each. During the year Bourne Crafts purchased 1,500 souvenir disks costing $3 each and produced 1,100 key chains. Compute the total cost of raw materials inventory at December 31.