Walla Walla Manufacturing produces snow shovels. The selling price per snow shovel is $33.00. There is no beginning inventory.

Costs involved in production are:
Direct material		$5.00
Direct labor		5.00
Variable manufacturing overhead		4.00
Total variable manufacturing costs per unit		$14.00
Fixed manufacturing overhead per year		$155,150

In addition, the company has fixed selling and administrative costs of $154,600 per year. During the year, Walla Walla produces 53,500 snow shovels and sells 48,350 snow shovels.

Exercise 5.11

What is the value of ending inventory using full costing?

Value of ending inventory

$87,035.00

Part II

What is the value of ending inventory using variable costing?

Value of ending inventory

$enter value of ending inventory in dollars