Question
Kokomo Manufacturing produces snow shovels. The selling price per snow shovel is $29.00. There is no beginning inventory. Costs involved in production are: Direct material
Kokomo Manufacturing produces snow shovels. The selling price per snow shovel is $29.00. There is no beginning inventory. Costs involved in production are: Direct material $5.00 Direct labor 3.00 Variable manufacturing overhead 2.00 Total variable manufacturing costs per unit $10.00 Fixed manufacturing overhead per year $223,100 In addition, the company has fixed selling and administrative costs of $155,200 per year. During the year, Kokomo produces 48,500 snow shovels and sells 43,490 snow shovels. How much fixed manufacturing overhead is in ending inventory under full costing? Fixed manufacturing overhead in ending inventory ompare this amount to the difference in the net incomes calculated in Exercise 5-13. The amount of fixed manufacturing overhead in ending inventory under full costing is select an option the difference in net income between full costing and variable costing.
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