Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island
Question:
Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $980. Selected data for the company’s operations last year follow:
Units in beginning inventory | 0 | |
| 240 | |
| 225 | |
| 15 | |
| | |
| $140 | |
| $360 | |
| $35 | |
| $20 | |
| | |
| $66,000 | |
| $28,000 |
The absorption costing income statement prepared by the company’s accountant for last year appears below: Sales
Sales | $220,500 | |
| 182,250 | |
| 38,250 | |
| 32,500 | |
| $ 5,750 |
Required:
1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year?
2. Prepare an income statement for last year using variable costing.
Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year?
Fixed manufacturing overhead cost included in inventory
Prepare an income statement for last year using variable costing.
Ida Sidha Karya Company
Variable Costing Income Statement
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer