7hw-2

Ida Sidha Karya Company is a family-owned company located 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 240 225 15 Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 140 $ $ $ $ 360 35 20 $ 66,000 $ 28,000 The absorption costing income statement prepared by the company's accountant for last year oppears below Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income $ 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 What is the amount of the difference in net operating income between the two costing methods? ine absorpuon cosung income statement prepared by the company s accountant for last year appears below Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income $ 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 What is the amount of the difference in net operating income between the two costing methods? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 R 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 R Req2A > YU 2 Prepare an income statement for last year using variable costing. What is the amount of the difference in net operating income between the two costing methods? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Prepare an income statement for last year using variable costing. Ida Sidha Karya Company Variable Costing Income Statement 0 0 0 0 Reg1 Reg 28 > i ne absorption cosung income statement prepared by the company s accountant for last year appears below Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income $ 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. What is the amount of the difference in net operating income between the two costing methods? Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 28 What is the amount of the difference in net operating income between the two costing methods? Amount of the difference in net operating income