Refer to the data in Exercise 8-1 for Ida Sidha Karya Company. An absorption costing income statement
Question:
Refer to the data in Exercise 8-1 for Ida Sidha Karya Company. An absorption costing income statement prepared by the company's accountant appears below:
Required:
1. Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period.
2. Prepare an income statement for the year using the variable costing method. Explain the difference in operating income between the two costing methods.
Transcribed Image Text:
Sales .... Cost of goods sold. Gross margin.. Selling and administrative expenses.. Operating income.. **** $382,500 315.000 67,500 51,250 $ 16,250
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1 50 units in ending inventory 240 per unit fixed manufacturing overhead per unit 12000 2 The ...View the full answer
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Related Book For
Managerial Accounting
ISBN: 9781260193275
12th Canadian Edition
Authors: Ray H. Garrison, Alan Webb, Theresa Libby
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