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Laramie Manufacturing produces snow shovels. The selling price per snow shovel is $ 29.00. There is no beginning inventory.
Costs involved in production are:
Direct material $ 4.00Direct labor 4.00Variable manufacturing overhead 3.00Total variable manufacturing costs per unit $ 11.00Fixed manufacturing overhead per year $ 233,550
In addition, the company has fixed selling and administrative costs of $ 162,400 per year.
Problem 1: During the year, Laramie produces 51,900 snow shovels and sells 46,500 snow shovels. What is the value of ending inventory using full costing?
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