Question: Please solve the following problem Nader, Inc produces e-readers that it sells for $80 each. Costs involved in production are as follows: Direct material $11
Please solve the following problem
Nader, Inc produces e-readers that it sells for $80 each. Costs involved in production are as follows:
Direct material $11 per unit
Direct labour $15 per unit
Variable manufacturing overhead $12 per unit
Fixed manufacturing overhead per year $448,000
In addition, the company has selling and administrative costs:
Fixed selling costs per year $175,000
Fixed administrative costs per year $75,000
Variable selling and administrate costs per year $6 per unit
During the year, Nader produced 28,000 readers and sold 29,4000. Beinging inventory totalled 1,800 units. Assusme the same unit costs in all years?
Calculate
How much is the net income using full costing?
How much fixed manufacturing overhead is in ending inventory under full costing?
Please provide working explaination please.
Thank you.
Allyson
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