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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
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 $760. Selected data for the company's operations last year follow. 12,000 10,000 2,000 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 $ $ $ $ 200 340 47 21 $760,000 $960,000 Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. Unit product cost $ 769 2. Assume that the company uses variable costing Compute the unit product cost for one gamelan. Unit product cost $ 689
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