Question

please help! what am i missing? i can only add to the spots that have an arrow next to em

Ida Sidha Karya Company is a family owned company located on the land of B in Indonesia. The company pro a handcrafted Balinese musical instrumented a gamelan that is a wylophone. The s tor $960. Selected data for the company's operations last year follow 320 Unita in beginning inventory Units produced 230 Units sold 200 Unite in ending inventory 30 Variable costa per unit Direct materials 110 Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead $69.000 Fixed selling and administrative $27,000 The absorption costing income statement prepared by the company's accountant for last year appears be Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income $192.000 152.000 40,000 29.000 $ 11,000 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 Prepare an income statement for last year using variable costing. Ida Sidha Karya Company Variable Costing Income Statement Sales $ 192,000 Variable expenses 22.000 64.000 6.000 927000 100,000 69.000 27.000 $ 90,000 4,000 Net operating income $ (Required 1 Reguired

Answer 1

a) Units fixed manufacturing overhead (69000/230) - $ 300/. Per unit Fixed manufacturing overhead in ending inventory is - (Ending inventory units * Fixed manufacturing overhead per unit) Fixed manufacturing overhead in ending inventory is = (30*300) Fixed manufacturing overhead in ending inventory is = $ 9,000/. b) Determination of Net Income under Variable costing system: Amount $ 192,000 105,800 (13,800) 92,000 Particulars Sales @ 960 per unit Less : - Variable cost of goods sold Beginning inventory Add: Variable cost of goods sold (110+320+30)*230 Less: Ending inventory (110+320-30)*30 Variable cost of goods sold Variable selling and administrative expense (10*200) Contribution Margin Less :- Fixed expenses Fixed manufacturing overhead Fixed Selling and Administrative overhead Total Fixed expenses Net Operating Income 2,000 98,000 69,000 27,000 96,000 2,000