21) Managerial Financial Accounting Assignments E5-11 to E5-18 Solution

21) Managerial Financial Accounting Assignments E5-11 to E5-18 Solution

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E5-11 to E5-18
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The following information relates to Exercises 5-11 through 5- 18: 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. EXERCISE 5-11. [LO 1] During the year, Summit produces 40,000 snow shovels and sells 37,000 snow shovels. What is the value of ending inventory using full costing? $ 49,500
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E5-11 to E5-18 Fixed Manufacturing Overhead $180,000 Divided by units produced 40,000 Fixed Manufacturing Overhead per unit $4.50 Direct Material per unit $5.00 Direct Labor per unit 4.00 Variable Manufacturing Overhead per unit 3.00 Cost per unit $16.50 Shovels produced 40,000 Shovels sold 37,000 Shovels in ending inventory 3,000 × Cost per unit $16.50 Value of ending inventory $49,500
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EXERCISE 5-12. [LO 1, 2] During the year, Summit produces 40,000 snow shovels and sells 37,000 snow shovels.
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