During the year, Summit produces 50,000 snow shovels and sells 45,000 snow shovels.
Summit Manufacturing produces snow shovels. The selling price per snow shovel is $30. There is no beginning inventory.
Costs involved in production are:
Direct material ..................................................................$ 5
Direct labor ........................................................................4
Variable manufacturing overhead ..............................................3
Total variable manufacturing costs per unit ...............................$ 12
Fixed manufacturing overhead per year ..............................$180,000
In addition, the company has fixed selling and administrative costs of $160,000 per year.
Required
What is net income using full costing?