Reference no: EM132854321
Question - Marx Manufacturing produces snow shovels. The selling price per snow shovel is $28.00. There is no beginning inventory.
Costs involved in production are:
Direct material $5.00
Direct labor 4.00
Variable manufacturing overhead 3.00
Total variable manufacturing costs per unit $12.00
Fixed manufacturing overhead per year $245,180
In addition, the company has fixed selling and administrative costs of $144,800 per year.
During the year, Marx produces 53,300 snow shovels and sells 48,010 snow shovels.
The ending inventory cost is $87,814.
The value of ending inventory using variable costing is $63,480.
The difference in full costing net income and variable costing net income without preparing either income statement $24,334.
Required - What is cost of goods sold using full costing?