Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $801. Selected data for the company's operations last year follow: Units in beginning inventory Units sold Units produced Units in ending inventory 0 16,000 12,000 4,000 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Required: $ 150 $ 410 $ 63 $ 22 $930,000 $740,000 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 dollar amount.) 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan. 1. Absorption costing unit product cost $ 753 2. Variable costing unit product cost $ 707 0.14 2 points eBook 14 Print References Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $840. 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: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs Fixed manufacturing overhead Fixed selling and administrative 0 300 275 25 $100 $310 $30 $ 35 $ 66,000 $31,000 The absorption costing income statement prepared by the company's accountant for last year appears below: Sales Cost of goods sold Gross margin Selling and administrative expense $231,000 101,500 49,500 40,625 $8,875 Net operating income 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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 Required Required 2 > 2 0.14 The absorption costing income statement prepared by the company's accountant for last year appears bell Sales Cost of goods sold, Gross margin $ 231,000 181,500 49,500 points eBook Print References Selling and administrative expense 40,625 $ 8,875 Net operating income Required: 1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's Inver year? 2. Prepare an income statement for last year using variable costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for last year using variable costing. Ida Company Variable Costing Income Statement Mc Graw Hill Chap 7: Exercises (1 pt) 3 0 Part 1 of 2 0.14 points eBook Print References Saved Required information [The following information applies to the questions displayed below.] Jorgansen Lighting, Incorporated, 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: Inventories Beginning (units) Ending (units) Variable costing net operating income Year 1 Year 2 Year 3 210 160 160 200 200 230 $ 300,000 $ 279,000 $ 250,000 The company's fixed manufacturing overhead per unit was constant at $570 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 Variable costing net operating income Add (deduct) fixed manufacturing overhead deferred in (released from) inventory under absorption costing Absorption costing net operating income Year 1 Year 2 Year 3