What is the value of ending inventory using full costing

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Question - Canarie Manufacturing produces snow shovels. The selling price per snow shovel is $30.00. There is no beginning inventory.

Costs involved in production are:

Direct material $6.00

Direct labor 4.00

Variable manufacturing overhead 2.00

Total variable manufacturing costs per unit $12.00

Fixed manufacturing overhead per year $198,400

In addition, the company has fixed selling and administrative costs of $151,600 per year.

During the year, Canarie produces 49,600 snow shovels and sells 44,100 snow shovels.

What is the value of ending inventory using full costing?

What is the value of ending inventory using variable costing?

Calculate the difference in full costing net income and variable costing net income without preparing either income statement.

Reference no: EM133020957

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