Ida Company produce that is similar to a xylo data for the company's Units in beginning Units
Ida Company produce that is similar to a xylo data for the company's Units in beginning Units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![ces
Ida Company produces a handcrafted musical instrument called a gamelan
that is similar to a xylophone. The gamelans are sold for $1,050. 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
Fixed costs:
Fixed manufacturing overhead
Fixed selling and administrative
Required:
0
12,000
9,000
3,000
$ 290
$ 500
$ 62
$ 17
$ 690,000
$ 440,000
1. Assume the company uses absorption costing. Compute the unit
product cost for one gamelan.
Note: Round your intermediate calculations and final answer to the
nearest whole dollar amount.
2. Assume the company uses variable costing. Compute the unit product
cost for one gamelan.
1. Absorption costing unit product cost
2. Variable costing unit product cost
$
910](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7dbaa42e-2168-440f-a894-87e7431e3606%2F816e5d30-203a-4e68-adc2-312541580300%2Fsyyucmv_processed.png&w=3840&q=75)
Transcribed Image Text:ces
Ida Company produces a handcrafted musical instrument called a gamelan
that is similar to a xylophone. The gamelans are sold for $1,050. 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
Fixed costs:
Fixed manufacturing overhead
Fixed selling and administrative
Required:
0
12,000
9,000
3,000
$ 290
$ 500
$ 62
$ 17
$ 690,000
$ 440,000
1. Assume the company uses absorption costing. Compute the unit
product cost for one gamelan.
Note: Round your intermediate calculations and final answer to the
nearest whole dollar amount.
2. Assume the company uses variable costing. Compute the unit product
cost for one gamelan.
1. Absorption costing unit product cost
2. Variable costing unit product cost
$
910
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