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Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The company produces a

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Ida Sidha Karya Company is a family-owned company located in the village of Gianyar 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 to a Canadian importer for $890. Selected data for the company's operations last year follow. Units in beginning inventory Units produced Units sold Units in ending inventory Variable conta per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 0 24,000 22,000 2,000 190 520 45 25 $ $ $610,000 $710,000 Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. Unit product cost 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan. Unit product cost Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Ball in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold to a Canadian importer for $920. Selected data for the company's operations last year follow: 0 275 260 15 Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 110 $ 320 40 15 $77,000 $ 33,000 An absorption costing income statement prepared by the company's accountant appears below: $239,200 195,000 Sales Cost of goods sold Gross margin Selling and administrative expense Niet operating income 44,200 36,900 $ 7,300 Required: 1. Determine how much of the ending Inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period. Total fixed manufacturing overhead in ending inventory 2. Prepare an income statement for the year using variable costing. IDA SIDHA KARYA COMPANY Variable Costing Income Statement Variable expenses: Fixed expenses

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