Penny Worth Manufacturing produces snow shovels. The selling price per snow shovel is $27.00. There is no beginning inventory.

Costs involved in production are:

Direct material $4.00

Direct labor 4.00

Variable manufacturing overhead 2.00

Total variable manufacturing costs per unit $10.00

Fixed manufacturing overhead per year $179,900

In addition, the company has fixed selling and administrative costs of $154,500 per year.

During the year, Penny Worth produces 51,400 snow shovels and sells 45,930 snow shovels.

What is the value of ending inventory using full costing?

Value of ending inventory $_____________________

What is the value of ending inventory using variable costing?

Value of ending inventory $_____________________

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

Difference in net income $______________________

What is cost of goods sold using full costing?

Cost of goods sold $____________________________

What is cost of goods sold using variable costing?

Variable cost of goods sold $___________________

What is net income using full costing?

Net income $________________________

What is net income using variable costing?

Net income $_______________________

How much fixed manufacturing overhead is in ending inventory under full costing?

Fixed manufacturing overhead in ending inventory $______________________________

The amount of fixed manufacturing overhead in ending inventory under full costing is greater than/less than/equal to the difference in net income between full costing and variable costing.