Managerial Accounting: E5-16 Summit Manufacturing - net income using full costing
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Managerial Accounting 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 5-16. During the year, Summit produces 40,000 snow shovels and sells 37,000 snow shovels. What is net income using full costing?