What is the value of ending inventory using variable costing

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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.

What is the value of ending inventory using variable costing?

Reference no: EM132857312

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