Reference no: EM132984072
Question - Accustart Manufacturing produces snow shovels. The selling price per snow shovel is $28.00. There is no beginning inventory.
Costs involved in production:
Direct material $6.00
Direct labor $4.00
Variable manufacturing overhead $4.00
Total variable manufacturing costs per unit $14.00
Fixed manufacturing overhead per year $196,560
In addition, the company has a fixed selling and administrative cost of $170,900 per year. During the year, Accustart produces 50,400 shovels and sells 45,390 shovels.
Value of ending inventory (full costing) $89,679
Value of ending inventory (variable costing) $70,140
Difference in full costing net income and variable costing net income without preparing either income statement: $19,539
Cost of goods sold using full costing $812,481
Cost of goods sold using variable costing 635,480
What is net income using full costing?
What is the net income using variable costing?