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Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The ga 90. Selected data for the company's operations last year follow: nits in beginning inventory nits produced nits sold nits in ending inventory ariable costs per unit: 240 225 15 $ 120 $ 330 $ 50 $ 25 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative ixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 72,000 $ 27,000 e absorption costing income statement prepared by the company's accountant for last year appears below: $ 222,750 180,000 42,750 32,625 $ 10,125 ales ost of goods sold ross margin elling and administrative expense et operating income quired:

Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The ga 90. Selected data for the company's operations last year follow: nits in beginning inventory nits produced nits sold nits in ending inventory ariable costs per unit: 240 225 15 $ 120 $ 330 $ 50 $ 25 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative ixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 72,000 $ 27,000 e absorption costing income statement prepared by the company's accountant for last year appears below: $ 222,750 180,000 42,750 32,625 $ 10,125 ales ost of goods sold ross margin elling and administrative expense et operating income quired:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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mework Problems i Saved Ida Company produces a handcrafted 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: Units in beginning inventory Units produced 240 Units sold 225 Units in ending inventory Variable costs per unit: 15 $ 120 $ 330 $ 50 $ 25 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 72,000 $ 27,000 The absorption costing income statement prepared by the company's accountant for last year appears below: $ 222,750 180,000 Sales Cost of goods sold Gross margin Selling and administrative expense 42,750 32,625 Net operating income $ 10,125 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 1 Required 2 Prepare an income statement for last year using variable costing. Ida Company Variable Costing Income Statement Sales $ 222,750 Variable expenses: Variable cost of goods sold $ 7,500 Variable selling and administrative expense 112,500 $ 5,625 125,625 97,125 < Prev 2 of 9 Next > O O
Transcribed Image Text:mework Problems i Saved Ida Company produces a handcrafted 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: Units in beginning inventory Units produced 240 Units sold 225 Units in ending inventory Variable costs per unit: 15 $ 120 $ 330 $ 50 $ 25 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 72,000 $ 27,000 The absorption costing income statement prepared by the company's accountant for last year appears below: $ 222,750 180,000 Sales Cost of goods sold Gross margin Selling and administrative expense 42,750 32,625 Net operating income $ 10,125 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 1 Required 2 Prepare an income statement for last year using variable costing. Ida Company Variable Costing Income Statement Sales $ 222,750 Variable expenses: Variable cost of goods sold $ 7,500 Variable selling and administrative expense 112,500 $ 5,625 125,625 97,125 < Prev 2 of 9 Next > O O
mework Problems i Saved CUSCS. Fixed manufacturing overhead Fixed selling and administrative $ 72,000 $ 27,000 The absorption costing income statement prepared by the company's accountant for last year appears below: $ 222,750 180,000 Sales Cost of goods sold Gross margin Selling and administrative expense 42,750 32,625 $ 10,125 Net operating income 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 1 Required 2 Prepare an income statement for last year using variable costing. Ida Company Variable Costing Income Statement Sales $ 222,750 Variable expenses: Variable cost of goods sold $ 7,500 Variable selling and administrative expense 112,500 $ 5,625 125,625 97,125 $ 97,125 < Required 1 Required 2 < Prev 2 of 9 Next >
Transcribed Image Text:mework Problems i Saved CUSCS. Fixed manufacturing overhead Fixed selling and administrative $ 72,000 $ 27,000 The absorption costing income statement prepared by the company's accountant for last year appears below: $ 222,750 180,000 Sales Cost of goods sold Gross margin Selling and administrative expense 42,750 32,625 $ 10,125 Net operating income 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 1 Required 2 Prepare an income statement for last year using variable costing. Ida Company Variable Costing Income Statement Sales $ 222,750 Variable expenses: Variable cost of goods sold $ 7,500 Variable selling and administrative expense 112,500 $ 5,625 125,625 97,125 $ 97,125 < Required 1 Required 2 < Prev 2 of 9 Next >
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