Steering 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 $5.00

Direct labor 4.00

Variable manufacturing overhead 4.00

Total variable manufacturing costs per unit $13.00

Fixed manufacturing overhead per year $177,840

In addition, the company has fixed selling and administrative costs of $172,200 per year.

During the year, Steering produces 49,400 snow shovels and sells 44,320 snow shovels.

6) What is net income using full costing?

7) What is net income using variable costing?

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

9) Fixed manufacturing overhead in ending inventory