Question
CovingtonManufacturing produces snow shovels. The selling price per snow shovel is $33.00. There is no beginning inventory. Costs involved in production are: Direct material $5.00Direct
CovingtonManufacturing produces snow shovels. The selling price per snow shovel is $33.00. There is no beginning inventory.
Costs involved in production are:
Direct material
$5.00Direct labor
5.00Variable manufacturing overhead
4.00Total variable manufacturing costs per unit
$14.00Fixed manufacturing overhead per year
$155,150
In addition, the company has fixed selling and administrative costs of $154,600per year.
During the year,Covingtonproduces53,500snow shovels and sells48,350snow shovels.
Exercise 5.11
What is the value of ending inventory using full costing?
Value of ending inventory$ ___________________________________
enter value of ending inventory in dollars
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