Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $850. Selected data for

Ida Company produces a handcrafted musical instrument 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 Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costsi Fixed manufacturing overhead Fixed selling and administrative 0 250 225 25 $ 100. $ 320 $ 40 $ 20 $ 60,000 $ 20,000 The absorption costing income statement prepared by the company's accountant for last year appears below: Sales Cost of goods sold Gross margin $ 191,250 157,500 33,750 Selling and administrative expense 24,500 $ 9,250 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 1 Required 2 > 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 + < Required 1 0 0 0 $ 0 Required 2 >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Charles Horngren

2nd Edition

0558514847, 978-0558514846

More Books

Students also viewed these Accounting questions

Question

(1 point) Calculate 3 sin x cos x dx.

Answered: 1 week ago

Question

2. Why?

Answered: 1 week ago

Question

1. Where do these biases come from?

Answered: 1 week ago