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

Costs involved in production are:
Direct material		$6.00
Direct labor		4.00
Variable manufacturing overhead		2.00
Total variable manufacturing costs per unit		$12.00
Fixed manufacturing overhead per year		$198,400

In addition, the company has fixed selling and administrative costs of $151,600 per year. During the year, Roger produces 49,600 snow shovels and sells 44,100 snow shovels.

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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What is the value of ending inventory using variable costing?

Value of ending inventory

$enter value of ending inventory in dollars

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

Difference in net income

$enter difference in net income in dollars

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What is cost of goods sold using full costing?

Cost of goods sold

$enter cost of goods sold in dollars

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What is cost of goods sold using variable costing?

Variable cost of goods sold

$enter variable cost of goods sold in dollars

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What is net income using full costing?

Net income

enter net income in dollars

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What is net income using variable costing?

Net income

$enter net income in dollars

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

Fixed manufacturing overhead in ending inventory

$enter fixed manufacturing overhead in dollars

Compare 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 equal togreater thanless than the difference in net income between full costing and variable costing.