1. Total fixed manufacturing overhead in ending inventory [Refer working note 1] | $6,000 | |
Ida Sidha Karya Company | ||
Variable Costing Income Statement | ||
Sales [Refer absorption costing income statement] | $191,250 | |
Variable Expenses: | ||
Variable Cost of Goods Sold [Refer working note 2] | $103,500 | |
Variable Selling and administrative expenses | $4,500 | |
[$103,500 + $4,500] | $108,000 | |
Contribution Margin [Sales - Variable expenses = $191,250 - $108,000] | $83,250 | |
Fixed expenses: | ||
Fixed manufacturing costs | $60,000 | |
Fixed selling and administrative expenses | $20,000 | |
[$60,000 + $20,000] | $80,000 | |
Net Operating Income [$83,250 - $80,000] | $3,250 |
.
.
Working note 1 - Calculation of total fixed manufacturing overhead in ending inventory | |
Total fixed manufacturing overhead (a) | $60,000 |
Number of units produced (b) | 250 |
Fixed manufacturing overhead per unit (c = a / b) | $240 |
Number of units in ending inventory (d) | 25 |
Total fixed manufacturing overhead in ending inventory (c x d) | $6,000 |
.
.
Working note 2 - Calculation of Variable cost of goods sold | |
Direct material per unit | $100 |
Direct labor per unit | $320 |
Variable overhead per unit | $40 |
Cost per unit under variable costing [$100 + $320 + $40] (a) | $460 |
Number of units sold (b) | 225 |
Variable cost of goods sold (a x b) | $103,500 |
Chapter 6 Practice Exercises and Problems (3 pts. Extra-Credit) Ida Sidha Karya Company is a family-owned...
Chapter 6
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 $950. Selected data for the company's operations last year follow: 270 235 A Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing...
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 $950. Selected data for the company's operations last year follow: 230 20 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: 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 $990. Selected data for the company's operations last year follow: 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 costs: Fixed manufacturing...
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 $910. Selected data for the company's operations last year follow: 0 300 270 30 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 $880. Selected data for the company's operations last year follow: 280 255 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: Fixed...
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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 $910. Selected data for the company's operations last year follow: ma 115 A Units in beginning inventory Units produced Units sold Units in ending inventory 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 for $950. Selected data for the company's operations last year follow: points (8 04:39:50 250 235 15 eBook Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor...
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...
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 $980. Selected data for the company's operations last year follow 240 225 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 $900. 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: 300 275 25 Print $125 $345 45 35 Direct materials Direct labor Variable manufacturing overhead Variable...