Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Can you please answer these questions, Thank you. Ida Sidha Karya Company is a family-owned company located on the island of Bali in Indonesia. The
Can you please answer these questions,
Thank you.
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 $809. Selected data for the company's operations last year follow Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: 12,000 10,000 2,000 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative 220 350 61 20 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 700,00e $ 500,00e Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. (Round your intermediate calculations and final answer to the nearest whole doller amount.) 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan. Absorption costing unit product cost 2. Variable costing unit product cost Required information The following information applies to the questions displayed below Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the following data Year 1 Year Inventories Beginning (units) Ending (units) 160 200 300,000 $269,e00 210 160 200 240 $250,000 Variable costing net operating income The company's fixed manufacturing overhead per unit was constant at $550 for all three years. Required: 1. Calculate each year's absorption costing net operating income. (Enter any losses or deductions as a negative value.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Year 1 Year 2 Year 3 Variable costing net operating income Add (deduct) fixed in (released from) inventory under absorption costing Absorption costing net operating income overhead deferredStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started