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Question - Hiroole Manufacturing produces snow shovels. The selling price per snow shovel is $27.00. There is no beginning inventory.
Costs involved in production are:
Direct material $5.00
Direct labor 5.00
Variable manufacturing overhead 2.00
Total variable manufacturing costs per unit $12.00
Fixed manufacturing overhead per year $237,360
In addition, the company has fixed selling and administrative costs of $157,500 per year. During the year, Hiroole produces 51,600 snow shovels and sells 46,480 snow shovels. The value of ending inventory using full costing? (in dollars) 84,992.00
What is the value of ending inventory using variable costing?
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