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

$87035

Exercise 5.12

What is the value of ending inventory using variable costing?

Value of ending inventory

$72100

Part III

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