Question
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
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 $14,935
Part IV What is cost of goods sold using full costing?
Cost of goods sold $ enter cost of goods sold in dollars ?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started