Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ML Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $910. Selected data
ML Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $910. Selected data for the company's operations last year follow. Units in beginning inventory Units produced 310 Units sold 280 Units in ending Inventory 30 Variable costs per units Direct materials $ 130 Direct labor $ 350 Variable manufacturing overhead $50 Variable selling and administrativa $40 Fixed costs Fixed manufacturing overhead $ 62,000 Fixed selling and administrative $26.000 The absorption costing income statement prepared by the company's accountant for last year appears below. Sales $ 256,800 Coat of goods sold 204,400 Gross margin 50,400 selling and administrative expense 37,200 Not operating income $ 13,200 Required: t. 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 1 Required 2 Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started