Reference no: EM132946704
Uli 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 $4.00
Direct labor 4.00
Variable manufacturing overhead 2.00
Total variable manufacturing costs per unit $10.00
Fixed manufacturing overhead per year $245,250
In addition, the company has fixed selling and administrative costs of $170,800 per year.
During the year, Uli produces 54,500 snow shovels and sells 49,310 snow shovels.
Value of ending inventory $75,255.00
Problem 1: What is the value of ending inventory using variable costing?
Value of ending inventory$51,900.00
Problem 2: Calculate the difference in full costing net income and variable costing net income without preparing either income statement.
Difference in net income $23,355.00
Problem 3: What is cost of goods sold using full costing?