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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Unformatted text preview: E5-11 to E5-18The 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$5Direct labor4Variable manufacturing overhead3Total variable manufacturing costs per unit$12Fixed manufacturing overhead per year$180,000In 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 E5-11 to E5-18Fixed Manufacturing Overhead$180,000Divided by units produced40,000Fixed Manufacturing Overhead per unit$4.50Direct Material per unit$5.00Direct Labor per unit4.00Variable Manufacturing Overhead per unit3.00Cost per unit$16.50Shovels produced40,000Shovels sold37,000Shovels in ending inventory3,000 Cost per unit$16.50Value of ending inventory$49,500EXERCISE 5-12. [LO 1, 2]During the year, Summit produces 40,000 snow shovels and sells 37,000 snow shovels....
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This note was uploaded on 06/21/2011 for the course MANAGERIAL MT425 taught by Professor Hodgson,k during the Spring '11 term at Kaplan University.

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

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