Xenoc, Inc. produces stereo speakers. The selling price per pair of speakers is							$1,800	Costs
involved in production are:
		Direct materials				$150
		Direct labor				200
		Variable manufacturing overhead				100
		Total variable manufacturing costs per unit				$450
		Fixed manufacturing overhead per year				$540,000
	In addition, the company has fixed selling and administrative costs:
		Fixed selling costs per year				$210,000
		Fixed administrative costs per year				$110,000
Exercise E5-4 During the year, Xenoc produces					1,200	pairs of speakers and sells
1,000	pairs. What is the value of ending inventory using full costing?
	Variable cost per unit					Amount
	Fixed manufacturing overhead per unit					Amount
	Title					Formula
	Ending inventory under full costing:					Formula
Exercise E5-5 During the year, Xenoc produces					1,200	pairs of speakers and sells
1,000	pairs. What is the value of ending inventory using variable costing?
	Ending inventory under variable costing:					Formula
Exercise E5-6 During the year, Xenoc produces					1,200	pairs of speakers and sells
1,000	pairs. What is the cost of goods sold using full costing?
	Title						Amount
	Title						Formula
Exercise E5-7 During the year, Xenoc produces					1,200	pairs of speakers and sells
1,000	pairs. What is variable cost of goods sold?
	Title						Amount
	Title						Formula
	Text answer as appropriate
Exercise E5-8 During the year, Xenoc produces					1,200	pairs of speakers and sells
1,000	pairs. What is net income using full costing?
		Sales				Amount
		Less Title				Amount
		Gross margin				Formula
		Less Title				Amount
		Less Title				Amount
		Net income				Formula
Exercise E5-9 During the year, Xenoc produces					1,200	pairs of speakers and sells
1,000	pairs. What is net income using variable costing?
		Sales				Amount
		Less Title				Amount
		Contribution margin				Formula
		Less Title				Amount
		Less Title				Amount
		Less Title				Amount
		Net income				Formula
Exercise E5-10 During the year, Xenoc produces					1,200	pairs of speakers and sells
1,000	pairs. How much fixed manufacturing overhead is in ending inventory under full costing? Compare
this amount to the difference in the net incomes calculated in Exercises E5-8 and E5-9.
Narrative answer:
Enter text answer here.