Problem No$.1$: Xenoc, Inc., produces stereo speakers. The selling price per pair of speakers is $$1,800.$ There is no beginning inventory. The cost involved in production are :

Direct Material $ $150$

Direct Labor $ $200$

Variable Manufacturing Overhead $ $100$

Total Variable Manufacturing cost per unit $ $450$

Fixed Manufacturing Overhead per year $$600,000$

Fixed Selling Costs per year $$210,000$

Fixed Administrative Costs per year $$110,000$

$1.$ During the year, Xenoc produces $1500$ pairs of speakers and sells $1200$ pairs.

What is the value of ending inventory using full costing?

What is the value of ending inventory using variable costing?

$2.$ During the year, Xenoc produces $1500$ pairs of speakers and sells $1200$ pairs.

What is the cost of goods sold using full costing?

What is the variable cost of goods sold?

$3.$ During the year, Xenoc produces $1500$ pairs of speakers and sells $1200$ pairs.

What is the net income using full costing?

What is the net income using variable costing?

$4.$ During the year, Xenoc produces $1500$ pairs of speakers and sells $1200$ pairs.

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

Compare this with the net incomes in point no$.3.$