Summit Manufacturing produces snow shovels. The selling price per snow shovel is 30.00. There is no...

Summit Manufacturing produces snow shovels. The selling price per snow shovel is 30.00. There is no beginning inventory.

Costs involved in production are:

Direct Material $5.00

Direct Labor $4.00

Variable Manufacturing overhead $3.00

Total Variable Manufacturing Costs per Unit $12.00

Fixed Manufacturing overhead per year $180,000

In addition the company has fixed selling and administrative costs of $160,000 per year.

During the year Summit produces 50,000 snow shovels and sells 45,000 snow shovels.

What is the value of ending inventory using full costing?

Expert Solution

The value of ending inventory using full costing
Direct material	5.00
Direct labor	4.00
Variable Manufacturing overhead	3.00
Fixed Manufacturing overhead per unit [$180,000 / 50,000 units]	3.60
Product cost per unit	15.60
Ending inventory units [50,000 units - 40,000 units]	5,000

The value of ending inventory using full costing [5,000 units x $15.60 per unit]	78,000

Therefore, the value of ending inventory using full costing will be $78,000

ekkarill92 answered 2 years ago

Ceradyne Manufacturing produces snow shovels. The selling price per snow shovel is $29.00. There is no...

Ceradyne Manufacturing produces snow shovels. The selling price per snow shovel is $29.00. There is no beginning inventory. Costs involved in production are: Direct material $5.00 Direct labor 3.00 Variable manufacturing overhead 2.00 Total variable manufacturing costs per unit $10.00 Fixed manufacturing overhead per year $223,100 In addition, the company has fixed selling and administrative costs of $155,200 per year. During the year, Ceradyne produces 48,500 snow shovels and sells 43,490 snow shovels. What is the value of ending inventory...

Kennel Manufacturing produces snow shovels. The selling price per snow shovel is $28.00. There is no...

Kennel Manufacturing produces snow shovels. The selling price per snow shovel is $28.00. There is no beginning inventory. Costs involved in production are: Direct material $5.00 Direct labor 4.00 Variable manufacturing overhead 3.00 Total variable manufacturing costs per unit $12.00 Fixed manufacturing overhead per year $245,180 In addition, the company has fixed selling and administrative costs of $144,800 per year. During the year, Kennel produces 53,300 snow shovels and sells 48,010 snow shovels. What is the value of ending inventory...

Cold City Blowers produces snow blowers. The selling price per snow blower is $80. Costs involved...

Cold City Blowers produces snow blowers. The selling price per snow blower is $80. Costs involved in production are: Direct material per unit $22 Direct labor per unit 15 Variable manufacturing overhead per unit 6 Fixed manufacturing overhead per year 206,400 In addition, the company has fixed selling and administrative costs of $88,000 per year. During the year, Cold City Blowers produced 8,600 snow blowers and sold 8,000 snow blowers. There is no beginning inventory. Ignoring taxes, how much will...

Downhill Manufacturing produces snow skis in a two-step production process - cutting and laminating. The manufacturing...

Downhill Manufacturing produces snow skis in a two-step production process - cutting and laminating. The manufacturing center is supported by two service centers - a health clinic and a janitorial service. The following table reveals certain facts about each activity: Health Health Janitorial Cutting Laminating Employees 3 5 12 16 Square footage 1,400 500 14,000 9,000 Cost incurred $160,000 $150,000 $720,000 900,000 (a) Using the direct method, allocate the service department costs to production. The clinic...

The Nanjing Company produces and sells 5,000 of baby carriages per year at a selling price...

The Nanjing Company produces and sells 5,000 of baby carriages per year at a selling price of $100 each. Its current production equipment was purchased two years ago for $500,000. The equipment is being depreciated on the straight-line basis with a 5-year useful life and zero salvage value. The emergence of a new technology has led Nanjing to consider either upgrading or replacing the production equipment. The following table presents data for the two alternatives: Upgrade Replace One-time costs $300,000...

Selling price of ZylexB per gallon $ 17.00 Selling price of ZylexA per gallon $ 11.00...

Selling price of ZylexB per gallon $ 17.00 Selling price of ZylexA per gallon $ 11.00 Minutes to manufacture a gallon of ZylexA 25 Additional minutes to manufacture a gallon of ZylexB 10 Cost per gallon of resources for manufacturing: ZylexA Additional Cost - ZylexB Material $2.00 $1.75 Labor 2.50 0.50 Variable overhead 2.25 1.10 Both products have been successful and demand for both products is strong and beyond the company's capacity. Since it takes additional time to...

For a table manufacturing company, selling price for a table is $203.00 per Unit, Variable cost...

For a table manufacturing company, selling price for a table is $203.00 per Unit, Variable cost is $23.00 per Unit, rent is $4,884.00 per month and insurance is $300.00 per month. Company wants to expand its business and improve the table quality, it wants to increase the selling price for a table to $305.00 per Unit, Variable cost to $59.00 per Unit, bigger area will have rent $6,985.00 per month and insurance is $421.00 per month At what point will...

For a table manufacturing company, selling price for a table is $161.00 per Unit, Variable cost...

For a table manufacturing company, selling price for a table is $161.00 per Unit, Variable cost is $25.00 per Unit, rent is $3,531.00 per month and insurance is $285.00 per month. Company wants to expand its business and improve the table quality, it wants to increase the selling price for a table to $290.00 per Unit, Variable cost to $57.00 per Unit, bigger area will have rent $5,704.00 per month and insurance is $389.00 per month At what point will...

Sales per period 1,000 units Selling price $40 per unit Variable manufacturing cost $12 per unit...

Sales per period 1,000 units Selling price $40 per unit Variable manufacturing cost $12 per unit Selling expenses $5,100 plus 5% of selling price Administrative expenses $3,000 plus 20% of selling price note Note that some costs have variable components such as commissions on sales and shipping costs. The contribution margin ratio would be: A) 70%. B) 45%. C) 75%. D) 55%.

Jeanclaude Corporation produces and sells one product. The budgeted selling price per unit is $105.

Jeanclaude Corporation produces and sells one product. The budgeted selling price per unit is $105. Budgeted unit sales for July, August, September, and October are 7,400, 7,500, 13,800, and 15,300 units, respectively. All sales are on credit. Regarding credit sales, 40% are collected in the month of the sale and 60% in the following month. The budgeted accounts receivable balance at the end of August is closest to: A) $525,000 B) S315,000 C) $472,500 D) $787,500

Question