Exercise E5-11 ~ 18 General Information

Summit Manufacturing, Inc. produces snow shovels. The selling price per snow shovel is $30. There is no beginning inventory.

		Costs involved in production are:
		Direct materials				$5.00
		Direct labor				4.00
		Variable manufacturing overhead				3.00
		Total variable manufacturing costs per unit				$12.00
		Fixed manufacturing overhead per year				$180,000
		In addition, the company has fixed selling and administrative costs per year:				$160,000
Exercise E5-11 During the year, Summit produces					50,000	snow shovels and sells
45,000	snow shovels. What is the value of ending inventory using full costing?
	Fixed Manufacturing Overhead					Amount
	Title					Number
	Fixed Manufacturing Overhead per unit					Formula
	Direct Materials per unit					Amount
	Title					Amount
	Title					Amount
	Title					Amount
	Cost per unit					Formula
	Shovels produced					Number
	Title					Number
	Title					Formula
	X ???					Amount
	Value of ending inventory using full costing:					Formula
Exercise E5-12 During the year, Summit produces					50,000	snow shovels and sells
45,000	snow shovels. What is the value of ending inventory using variable costing?
	Direct Materials per unit					Amount
	Title					Amount
	Title					Amount
	Cost per unit					Formula
	Shovels produced					Number
	Title					Number
	Title					Formula
	X ???					Amount
	Value of ending inventory under variable costing:					Formula
Exercise E5-13 During the year, Summit produces					50,000	snow shovels and sells
45,000	snow shovels. Calculate the difference in full costing net income and variable costing net income
without preparing either income statement.
	Shovels produced					Number
	Title					Number
	Title					Formula
	X ???					Amount
	Difference in net income:					Formula
Exercise E5-14 During the year, Summit produces					50,000	snow shovels and sells
45,000	snow shovels. What is the cost of goods sold using full costing?
	Title					Amount
	Divided by ???					Number
	Fixed Manufacturing Overhead per unit					Formula
	Direct Materials per unit					Amount
	Title					Amount
	Title					Amount
	Title					Amount
	Cost per unit					Formula
	Title					Number
	X ???					Amount
	Cost of goods sold using full costing:					Formula
Exercise E5-15 During the year, Summit produces					50,000	snow shovels and sells
45,000	snow shovels. What is the variable cost of goods sold?
	Title					Amount
	Title					Amount
	Title					Amount
	Cost per unit					Formula
	Title					Number
	Title					Amount
	Variable cost of goods sold:					Formula
Exercise E5-16 During the year, Summit produces					50,000	snow shovels and sells
45,000	snow shovels. What is net income using full costing?
	Sales					Amount
	Less ???					Amount
	Contribution margin					Formula
	Less ???					Amount
	Net income					Formula
Exercise E5-17 During the year, Summit produces					50,000	snow shovels and sells
45,000	snow shovels. What is net income using variable costing?
	Sales					Amount
	Less ???					Amount
	Contribution margin					Formula
	Less fixed costs:
	Title					Amount
	Title					Amount
	Net income					Formula
Exercise E5-18 During the year, Summit produces					50,000	snow shovels and sells
45,000	snow shovels. How much fixed manufacturing overhead is in ending inventory under full costing?
Compare this amount to the difference in the net incomes calculated in Exercise 5-13.
	Fixed Manufacturing Overhead					Amount
	Title					Number
	Title					Formula
	Shovels produced					Number
	Title					Number
	Title					Formula
	Title					Amount
	Title					Formula
Narrative answer:
Enter text answer here.