UliManufacturing produces snow shovels. The selling price per snow shovel is $29.00. There is no beginning inventory.

Costs involved in production are:

Direct material

$4.00Direct labor

4.00Variable manufacturing overhead

2.00Total variable manufacturing costs per unit

$10.00Fixed manufacturing overhead per year

$245,250

In addition, the company has fixed selling and administrative costs of $170,800per year.

During the year,Uliproduces54,500snow shovels and sells49,310snow shovels.

What is the value of ending inventory using full costing?75,255.00

What is the value of ending inventory using variable costing?51,900.00

Exercise 5.13

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