CanarieManufacturing produces snow shovels. The selling price per snow shovel is $30.00. There is no beginning inventory.

Costs involved in production are:

Direct material

$6.00Direct labor

4.00Variable manufacturing overhead

2.00Total variable manufacturing costs per unit

$12.00Fixed manufacturing overhead per year

$198,400

In addition, the company has fixed selling and administrative costs of $151,600per year.

During the year,Canarieproduces49,600snow shovels and sells44,100snow shovels.

What is the value of ending inventory using full costing?

Value of ending inventory $88,00

enter value of ending inventory in dollars

What is the value of ending inventory using variable costing?

Value of ending inventory $66,000

Answer needed below:

Calculate the difference in full costing net income and variable costing net income without preparing either income statement.

Difference in net income $