Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone....
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66562ae74522e_11166562ae73cf9e.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66562ae7cfc04_11166562ae7c5d07.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66562ae86514a_11266562ae8567e2.jpg)
Transcribed Image Text:
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $950. 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 0 250 230 20 $ 125 $ 335 $ 55 $ 30 $ 75,000 $ 15,000 The absorption costing income statement prepared by the company's accountant for last year appears below: Sales $ 218,500 Cost of goods sold Gross margin Selling and administrative expense Net operating income Required: 187, 450 31,050 21, 900 $ 9,150 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. Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $950. 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 0 250 230 20 $ 125 $ 335 $ 55 $ 30 $ 75,000 $ 15,000 The absorption costing income statement prepared by the company's accountant for last year appears below: Sales $ 218,500 Cost of goods sold Gross margin Selling and administrative expense Net operating income Required: 187, 450 31,050 21, 900 $ 9,150 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.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
A diesel-powered tractor with a cost of $185,000 and estimated residual value of $37,000 is expected to have a useful operating life of 40,000 hours. During February, the generator was operated 140...
-
At room temperature, do collisions between nitrogen molecules have enough energy to set a nitrogen molecule rotating? Enough to set it vibrating? The quantum of energy associated with rotation is...
-
Describe the advantages and disadvantages of the money measurement concept and explain why students studying business and management should learn about accounting.
-
Gwen Delk and Alliesha Johnson decide to form a partnership by combining the assets of their separate businesses. Delk contributes the following assets to the partnership: Cash, $13,000; accounts...
-
TB MC Qu . 1 5 - 9 9 ( Algo ) Carpark Services... Carpark Services began operations in 2 0 1 and maintains investments in available - for - sale debt securities . The year - end cost and foir values...
-
Consider the following projects with their respective cash flows: Year Project A Project B Project C Initial Outlay -$30,000 -$25,000 -$35,000 Year 1 $10,000 $8,000 $12,000 Year 2 $10,000 $8,000...
-
a. What are some of the key differences between traditional and digital marketing, and how might these differences impact the small business owner's decision? (5 Marks) b. What are the various social...
-
How the company plans its activities including the planning process management uses and some detail and examples of its strategic, tactical and operational plans. Answer and the specific company I...
-
What does a global leader look like? Discuss what should be considered as one becomes a global leader. Based on the readings for this period, draw key considerations concerning global leadership. Do...
-
What are some of the barriers to an online education? What methods do Educational technology entrepreneurs such as Class Dojo and Goal book use to combat the barriers of an online education?
-
How does the intersectionality of various dimensions of diversity, including but not limited to race, ethnicity, gender, sexual orientation, disability, and socioeconomic background, influence the...
-
Untitled Question * The most critical measures of project success are completing the project on schedule and on budget. True' False
-
Prepare income statements for manufacturing and service organizations.
-
Explain the differences between traditional and contemporary cost management systems.
-
Why should the cost management system be inte grated with the operational systems of the value chain?
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App