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 $948. Selected data for the company’s operations last year follow:
Units in beginning inventory | 0 | |
Units produced | 24,000 | |
Units sold | 20,000 | |
Units in ending inventory | 4,000 | |
Variable costs per unit: | ||
Direct materials | $ | 290 |
Direct labor | $ | 440 |
Variable manufacturing overhead | $ | 53 |
Variable selling and administrative | $ | 19 |
Fixed costs: | ||
Fixed manufacturing overhead | $ | 830,000 |
Fixed selling and administrative | $ | 880,000 |
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.
1) under absorption costing , all manufacturing cost ( variable and fixed) are included in cost of production:
Direct material | $290 |
Direct labour | $440 |
Variable manufacturing overhead | $53 |
Fixed manufacturing overhead($830000/24000) | $35 |
Absorption costing unit cost | $818 |
2) under variable costing only variable manufacturing cost are included in product cost
Direct material | $290 |
Direct labour | $440 |
Variable manufacturing overhead | $53 |
Variable costing unit product cost | $783 |
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Ida Sidha Karya Company is a family-owned company located on the island of Bali in Indonesia....
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 $870. Selected data for the company's operations last year follow: 0 18,000 14,000 4,000 Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed...
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 $837. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 19,000 Units sold 16,000 Units in ending inventory 3,000 Variable costs per unit: Direct materials $ 180 Direct labor $ 440 Variable manufacturing overhead $...
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 $874. Selected data for the company's operations last year follow: 22,000 19,000 3,000 Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs:...
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 $918. Selected data for the company's operations last year follow: 24,000 21,000 3,000 A Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed...
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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 $903. Selected data for the company's operations last year follow: 25,000 22,000 3,000 Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs:...
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 $860. Selected data for the company's operations last year follow: 21,000 18.000 3,000 Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs:...
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 $674. Selected data for the company's operations last year follow 12,000 9,000 3,000 Units in beginning inventory Units produced Units sold Units in ending inventory Variable coata per unitt Direct materiala Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costat...