The value of ending inventory using full costing

 

1.What is the value of ending inventory using full costing?

2.What is the value of ending inventory using variable costing?

3.What is the cost of goods sold using full costing?

4.What is the cost of goods sold using variable costing?

5.What is net income using full costing?

Clinton Manufacturing produces snow shovels. The selling price per snow shovel is $31.00. There is no beginning inventory.

Costs involved in production are:

Direct material $6.00

Direct labor 4.00

Variable manufacturing overhead 4.00

Total variable manufacturing costs per unit $14.00

Fixed manufacturing overhead per year $166,650

In addition, the company has fixed selling and administrative costs of $161,100 per year

 

Sample Solution

export tariffs’, barrier to market entry and policies (Johnston, Gregory, & Smith, 2011, free trade). Many countries have reaped benefits from free trade and especially developing countries. Some benefits include improvement in infrastructures, expanded markets, access to technologies, free movement of labour and capital, investment, and political relations in form of integrations. These benefits have played a major role in the economic developments of developing countries. However, some countries argue against free trade claiming that it is a burden to developing countries and they object it. Some arguments against include exploitation of developing countries by industrialised, environmental pollution, unemployment of domestic workers, and underperformance of domestic industries thus affecting the country’s economic growth. Free trade has positively impacted to developing countries by stimulating their economic development goals such as millennium development goals thus it can be said to be realistic in the real world.

Free trade was found to work out for countries such as Japan, South Korea, China, other East Asia countries, and most of the developed countries in the world. Trade liberalization led to development of these countries and to attainment of their current level of ‘developed countries’ in the world. The countries formed ‘free trade and economic partnership agreements that helped in negotiations of trade across borders was important in facilitating trade,’ technical support, services, environmental and social issues (Zeng, 2010 p. 651). The guidelines helped countries to carry out trade in a defined environment that prevented them from exploiting each other in terms of natural resources. As a result, the countries realised developments. This has also worked out for developing countries such as those in sub-Sahara Africa for example Egypt. Moreover, free trade agreements encourage foreign direct investments in developing countries increasing inward revenues to these countries. The increased revenues to these countries are channelled to development projects such infrastructures and improving social amenities to citizens. In addition, foreign direct investments create employment for domestic workers thus helping developing countries to lower their unemployment rates. This is one of the achievements that have contributed greatly to shifting of countries from undeveloped cycles to becoming developed. For example, foreign direct investment has contributed to develop

This question has been answered.

Get Answer
WeCreativez WhatsApp Support
Our customer support team is here to answer your questions. Ask us anything!
👋 Hi, Welcome to Compliant Papers.