Question
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
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Total variable manufacturing costs per unit $14.00
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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? ____________
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