01:53:23 Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $890. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 17,000 Units sold 15,000 Units in ending inventory 2,000 Variable costs per unit: Direct materials $ 190 Direct labor $ 480 Variable manufacturing overhead $ 48 Variable selling and administrative $ 16 Fixed costs: Fixed manufacturing overhead $ 880,000 Fixed selling and administrative $ 410,000 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.
01:53:23 Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $890. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 17,000 Units sold 15,000 Units in ending inventory 2,000 Variable costs per unit: Direct materials $ 190 Direct labor $ 480 Variable manufacturing overhead $ 48 Variable selling and administrative $ 16 Fixed costs: Fixed manufacturing overhead $ 880,000 Fixed selling and administrative $ 410,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Time Remaining 1 hour 53 minutes 23 seconds
01:53:23Item 3
Time Remaining 1 hour 53 minutes 23 seconds
01:53:23Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $890. Selected data for the company’s operations last year follow:
| Units in beginning inventory | 0 |
|---|---|
| Units produced | 17,000 |
| Units sold | 15,000 |
| Units in ending inventory | 2,000 |
| Variable costs per unit: | |
| Direct materials | $ 190 |
| Direct labor | $ 480 |
| Variable manufacturing |
$ 48 |
| Variable selling and administrative | $ 16 |
| Fixed costs: | |
| Fixed manufacturing overhead | $ 880,000 |
| Fixed selling and administrative | $ 410,000 |
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.
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