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Exercise 7-2 (Algo) Variable Costing Income Statement; Explanation of Difference in Net Operating Income [LO7-2] Ida Company produces a handcrafted musical Instrument called a gamelan that is similar to a xylophone. The gameians are sold for $990. Selected data for the company's operations lest year follow Units in beginning inventory Units produced Units sold Unita in ending inventory Variable costs per units Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costar Tixed manufacturing overhead Fixed selling and administrative 0 240 225 15 $120 $ 330 $ 50 $ 25 $ 72,000 $ 27,000

Exercise 7-2 (Algo) Variable Costing Income Statement; Explanation of Difference in Net Operating Income [LO7-2] Ida Company produces a handcrafted musical Instrument called a gamelan that is similar to a xylophone. The gameians are sold for $990. Selected data for the company's operations lest year follow Units in beginning inventory Units produced Units sold Unita in ending inventory Variable costs per units Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costar Tixed manufacturing overhead Fixed selling and administrative 0 240 225 15 $120 $ 330 $ 50 $ 25 $ 72,000 $ 27,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Exercise 7-2 (Algo) Variable Costing Income Statement; Explanation of Difference in Net Operating Income [LO7-2] Ida Company produces a handcrafted musical Instrument called a gamelan that is similar to a xylophone. The gameians are sold for $990. Selected data for the company's operations last year follow: Units in beginning inventory Units produced Unita sold Unita in ending inventory Variable costs per units Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Pixed costar Fixed manufacturing overhead rixed selling and administrative Sales Cost of goods sold Gross margin Selling and administrative expense - Net operating income 0 $ 222,750 180.000 42,750 32,625 $ 12.125 240 225 15 $72,000 $ 27,000 The absorption costing income statement prepared by the company's accountant for last year appears below: $120 $ 330 $ 50 $ 25 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. Prev 3 of 7 Next >
Transcribed Image Text:Exercise 7-2 (Algo) Variable Costing Income Statement; Explanation of Difference in Net Operating Income [LO7-2] Ida Company produces a handcrafted musical Instrument called a gamelan that is similar to a xylophone. The gameians are sold for $990. Selected data for the company's operations last year follow: Units in beginning inventory Units produced Unita sold Unita in ending inventory Variable costs per units Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Pixed costar Fixed manufacturing overhead rixed selling and administrative Sales Cost of goods sold Gross margin Selling and administrative expense - Net operating income 0 $ 222,750 180.000 42,750 32,625 $ 12.125 240 225 15 $72,000 $ 27,000 The absorption costing income statement prepared by the company's accountant for last year appears below: $120 $ 330 $ 50 $ 25 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. Prev 3 of 7 Next >
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 Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? Fixed manufacturing overhead bost included in inventory Required 1 Required 2 Required 2 > Prepare an income statement for last year using variable costing. Ida Company Variable Costing Income Statement < Required 1 0 0 0
Transcribed Image Text: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 Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? Fixed manufacturing overhead bost included in inventory Required 1 Required 2 Required 2 > Prepare an income statement for last year using variable costing. Ida Company Variable Costing Income Statement < Required 1 0 0 0
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