cesIda Company produces a handcrafted musical instrument called a gamelanthat is similar to a xylophone. The gamelans are sold for $1,050. Selecteddata for the company's operations last year follow:Units in beginning inventoryUnits producedUnits soldUnits in ending inventoryVariable costs per unit:Direct materialsDirect laborVariable manufacturing overheadVariable selling and administrativeFixed costs:Fixed manufacturing overheadFixed selling and administrativeRequired:012,0009,0003,000$ 290$ 500$ 62$ 17$ 690,000$ 440,0001. Assume the company uses absorption costing. Compute the unitproduct cost for one gamelan.Note: Round your intermediate calculations and final answer to thenearest whole dollar amount.2. Assume the company uses variable costing. Compute the unit productcost for one gamelan.1. Absorption costing unit product cost2. Variable costing unit product cost$910

ABSORPTION COSTINGAbsorption Costing is a Cost Management Accounting method in which all costs…

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Business

Accounting

Ida Company produce that is similar to a xylo data for the company's Units in beginning Units

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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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

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