During the year, Xenoc produces 1,200 pairs of speakers and sells 1,000 pairs.
Required:
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 8 and 9.
Summit Manufacturing, Inc. produces snow shovels. The selling price per snow shovel is $30.
Costs involved in production are:
Direct material................$5
Direct labor..................$4
Variable manufacturing overhead.......$3
Total variable manufacturing costs per unit....$12
Fixed manufacturing overhead per year.....$180,000
In addition, the company has fixed selling and administrative costs of $160,000 per year.