Solution: | ||||
1. | Fixed manufacturing overhead cost included in inventory | $7,500 | ||
Working Notes: | ||||
Fixed manufacturing overhead per unit = Total fixed manufacturing overhead/total units produced | ||||
=$65,000/260 units | ||||
=$250 per unit | ||||
Units in ending inventory = 30 units | ||||
Fixed manufacturing overhead cost included in inventory = units in ending inventory x Fixed manufacturing overhead cost per unit | ||||
=30 units x $250 per unit | ||||
=$7,500 | ||||
2. | ||||
Ida Sidha Karya Company | ||||
Variable Costing Income Statement | ||||
Sales | $200,100 | |||
Variable expenses: | ||||
Variable cost of goods sold | $109,250 | |||
Variable selling and administrative expense | $3,450 | |||
$112,700 | ||||
Contribution margin | $87,400 | |||
Fixed expenses: | ||||
Fixed manufacturing overhead | $65,000 | |||
Fixed selling and administrative | $21,000 | |||
$86,000 | ||||
Net operating income | $1,400 | |||
Working Notes: | ||||
Follow the calculation show in alphabets in 1st column to understand how the amounts are calculated. | ||||
Ida Sidha Karya Company | ||||
Variable Costing Income Statement | ||||
a | Sales | $200,100 | ||
[230 units sold x $870 selling price per unit] | ||||
Variable expenses: | ||||
b | Variable cost of goods sold | 109,250 | ||
[230 units sold x $475 Variable cost of goods sold per units ] | ||||
c | Variable selling and administrative expense | 3,450 | ||
[230 units sold x $15 Variable selling and admin. per units ] | ||||
d=b+c | 112,700 | |||
e=a-d | Contribution margin | 87,400 | ||
Fixed expenses: | ||||
f | Fixed manufacturing overhead | 65,000 | ||
g | Fixed selling and administrative | 21,000 | ||
h=f+g | 86,000 | |||
i=e-h | Net operating income | 1,400 | ||
Notes: | Variable cost of goods sold per units | |||
Variable costs per unit: | ||||
Direct materials | 105 | |||
Direct labor | 325 | |||
Variable manufacturing overhead | 45 | |||
Variable cost of goods sold per units | 475 | |||
Please feel free to ask if anything about above solution in comment section of the question. |
Help ercises Ida Sidha Karya Company is a family owned company located in the village of...
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 $956. Selected data for the company
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
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 $870. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 260 Units sold 230 Units in ending inventory 30 Variable costs per unit: Direct materials $ 105 Direct labor $...
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 $...