Ida Sidha Karya Company is a family-owned company located 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 for $631. Selected data for the company's operations last year follow: Units in beginning inventory Units produced 23,000 Units sold 19,000 Units in ending inventory 4,000 Variable costs per unit: Direct materials 110 Direct labor Variable manufacturing overhead Variable selling and $ 25 administrative Fixed costs: Fixed manufacturing overhead $ 790,000 Fixed selling and administrative $940,000 Required: 1. Assume that the company uses absorption costing, Compute the unit product cost for one gamelan. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan. Absorption costing unit product cost Variable costing unit product cost Ida Sidha Karya Company is a family-owned company located 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 $980. Selected data for the company's operations last year follow: Units in beginning inventory Units produced 240 Units sold 225 Units in ending inventory 15 Variable costs per unit: Direct materials 140 Direct labor 360 Variable manufacturing $ 35 overhead Variable selling and $ 20 administrative Fixed costs: Fixed manufacturing overhead $ 66,000 Fixed selling and administrative $ 28,000 The absorption costing income statement prepared by the company's accountant for last year appears below. Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income $ 220,500 182,250 38,250 32,500 $ 5,750 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 Required 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 > $980. Selected data for the company's operations last year follow: 225 Units in beginning inventory Units produced 240 Units sold Units in ending inventory Variable costs per unit: Direct materials $ 140 Direct labor $ 360 Variable manufacturing $ 35 overhead Variable selling and administrative $ 20 Fixed costs! Fixed manufacturing overhead $66,000 Fixed selling and administrative $28,000 The absorption costing income statement prepared by the company's accountant for last year appears below. Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income $220,500 182,250 38.250 32,500 $ 5.750 Required: 1. Under absorption costing, how much foved 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 Required Prepare an income statement for last year using variable costing. Ida Sidha Karya Company Variable Costing Income Statement
