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Ida Sidha Karya Company is a family-owned company located in the village of Glanyar on the island of Bali in Indonesia. The company produces a
Ida Sidha Karya Company is a family-owned company located in the village of Glanyar 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 $850. Selected data for the companys operations last year follow: |
Units in beginning inventory | 0 | |
Units produced | 250 | |
Units sold | 225 | |
Units in ending inventory | 25 | |
Variable costs per unit: | ||
Direct materials | $ 100 | |
Direct labor | $ 320 | |
Variable manufacturing overhead | $ 40 | |
Variable selling and administrative | $ 20 | |
Fixed costs: | ||
Fixed manufacturing overhead | $ 60,000 | |
Fixed selling and administrative | $ 20,000 | |
Required: |
1. | Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. |
2. | Assume that the company uses variable costing. Compute the unit product cost for one gamelan. |
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