Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 54,000 shovels and

sells 45,390 shovels.

What is the value of ending inventory using variable costing? ____________

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

11th Edition

1119594596, 978-1119594598

More Books

Students also viewed these Accounting questions

Question

Define and draw a motor unit.

Answered: 1 week ago

Question

What other requirements do they have for admission?

Answered: 1 week ago

Question

1. Empirical or factual information,

Answered: 1 week ago

Question

1. To take in the necessary information,

Answered: 1 week ago