Exercise 7-1 Variable and Absorption Costing Unit Product Costs [LO7-1]
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 $793. Selected data for the company’s operations last year follow:
Units in beginning inventory | 0 | |
Units produced | 22,000 | |
Units sold | 18,000 | |
Units in ending inventory | 4,000 | |
Variable costs per unit: | ||
Direct materials | $ | 120 |
Direct labor | $ | 480 |
Variable manufacturing overhead | $ | 48 |
Variable selling and administrative | $ | 15 |
Fixed costs: | ||
Fixed manufacturing overhead | $ | 760,000 |
Fixed selling and administrative | $ | 700,000 |
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.
Answer
Unit product Cost |
Absorption Costing |
Variable costing |
Direct Material |
$120.00 |
$120.00 |
Direct Labor |
$480.00 |
$480.00 |
Variable factory overhead |
$48.00 |
$48.00 |
Fixed factory overhead |
$34.55 |
$0.00 |
Total unit product cost |
$682.55 |
$648.00 |
Exercise 7-1 Variable and Absorption Costing Unit Product Costs [LO7-1] Ida Sidha Karya Company is a...
Exercise 6-1 Variable and Absorption Costing Unit Product Costs [LO6-1] 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 $775. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 15,000 Units sold 11,000 Units in ending inventory 4,000 Variable costs per unit: Direct materials...
Exercise 7-1 Variable and Absorption Costing Unit Product Costs (L07-13 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 $726. 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 unitt Direct materials Direct...
2. 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:
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...
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 for $850. Selected data for the company's operations last year follow: 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...
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 $773. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 14,000 Units sold 12,000 Units in ending inventory 2,000 Variable costs per unit: Direct materials $...
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 $904. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 23,000 Units sold 20,000 Units in ending inventory 3,000 Variable costs per unit: Direct materials $...
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 $877. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 11,000 Units sold 7,000 Units in ending inventory 4,000 Variable costs per unit: Direct materials $...
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 $945. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 18,000 Units sold 14,000 Units in ending inventory 4,000 Variable costs per unit: Direct materials $...
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 $822. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 14,000 Units sold 11,000 Units in ending inventory 3,000 Variable costs per unit: Direct materials $...
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 $904. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 23,000 Units sold 20,000 Units in ending inventory 3,000 Variable costs per unit: Direct materials $...