Lenat's contribution income statement utilizing variable costing appears below:
Lenat Company
Income Statement
For the year ended December 31, 2010
- Sales ($28/unit) $1,120,000
- Less variable costs:
- Cost of goods sold 560,000
- Selling & administrative costs 96,000 656,000
- Contribution margin 464,000
- Less fixed costs:
- Manufacturing overhead 80,000
- Selling & administrative costs 90,000 170,000
- Profit $294,000
Lenat Company produced 50,000 units during the year. Variable costs per unit and fixed production costs have remained constant the entire year. There were no beginning inventories. How much is the dollar value of the ending inventory using full costing?