Exercise 6-1

EXERCISE 6-1 variable and Absorption Costing Unit Product Costs LO6-1 village of Gianyar Ida a Karya Company is a family-owned company located in the island of Bali Indonesia. The company produces a handcrafted Balinese musical instrument in called a gamelan that is similar to a xylophone. The gamelans are sold for $850. Selected data for the company's operations last year follow: Units in beginning inventory 250 Units produced Units sold 25 Units in ending inventory Variable costs per unit: $100 Direct materials $320 Direct labor $40 Variable manufacturing overhead Variable selling and administrative $20 Fixed costs: Fixed manufacturing overhead $60,000 Fixed selling and administrative $20,000