Question

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 $874. Selected data for the company's operations last year follow: 0 Units in beginning inventory Units produced 11,000 Units sold 8,000 3,000 Units in ending inventory Variable costs per unit: 250 $ $ $ 360 Direct materials Direct labour Variable manufacturing $ 61

Answer 1

Answer of Part 1:

Unit Product Cost = Direct Material per unit + Direct Labor per unit + Variable Manufacturing Overhead per unit + Fixed Manufacturing Overhead per unit
Unit Product Cost = $250 + $360 + $61 + ($800,000 /11,000)
Unit Product Cost = $250 + $360 + $61 + $72.73
Unit Product Cost = $743.73

Answer of Part 2:

Unit Product Cost = Direct Material per unit + Direct Labor per unit + Variable Manufacturing Overhead per unit
Unit Product Cost = $250 + $360 + $61
Unit Product Cost = $671