Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for$850. Selected data 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 administrative025022525SalesCost of goods soldGross marginSelling and administrative expenseNet operating income$100$320$ 40$20$ 60,000$ 20,0004The absorption costing income statement prepared by the company's accountant for last year appears below:$191,250157,50033,75024,500$9,250Required:1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of lastyear?2. Prepare an income statement for last year using variable costing.

Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylop $850. 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 0 250 225 25 $100 $320 $ 40 $20 $ 60,000 $ 20,000 K

Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylop $850. 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 0 250 225 25 $100 $320 $ 40 $20 $ 60,000 $ 20,000 K

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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Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $788. Selected data for the company's operations last year follow: Units in beginning inventory Units produced 13,000 10,000 3,000 Units sold Units in ending inventory Variable costs per unit: Direct materials 200 Direct labor 360 $ Variable manufacturing overhead Variable selling and administrative Fixed costs: 58 25 Fixed manufacturing overhead Fixed selling and administrative $ 650,000 $ 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. 1. Absorption costing unit product cost 2. Variable costing unit product cost
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Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $73 per unit in two geographic regions-East and West. The following information pertains to the company's first year of operations in which it produced 44,000 units and sold 39,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense The company sold 29,000 units in the East region and 10,000 units in the West region. It determined $180,000 of its fixed selling and administrative expense is traceable to the West region, $130,000 is traceable to the East region, and the remaining $90,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its…
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $850. 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 250 225 25 $ 100 $ 320 $ 40 $ 20 $ 60,000 $ 20,000 The absorption costing Income statement prepared by the company's accountant for last year appears below. Sales $ 191,250 Cost of goods sold 157,500 Gross margin 33,750 Selling and administrative expense 24,500 $ 9,250 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. Answer is complete…
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $850. 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 250 225 25 $ 100 $ 320 $ 40 $ 20 $ 60,000 $ 20,000 The absorption costing Income statement prepared by the company's accountant for last year appears below. Sales Cost of goods sold Gross margin $ 191,250 157,500 33,750 Selling and administrative expense 24,500 $ 9,250 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…
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $942. 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 0 14,000 10,000 4,000 1. Absorption costing unit product cost 2. Variable costing unit product cost $ 240 $ 460 $58 $ 23 $ 610,000 $ 780,000 Required: 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.
Chuck Wagon Grills, Incorporated, makes a barbecue grill it sells for $210. Data for last year's operations 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 Total variable.cost per unit Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Total fixed costs 0 20,000 19,000 1,000 $ 50 80 20 10 $ 160 $ 700,000 285,000 $ 985,000 Required: 1. Assume the company uses variable costing. Compute the unit product cost for one barbecue grill. 2. Assume the company uses variable costing. Prepare a contribution format income statement for last year. 3. How many barbecue grills must be sold to break even?
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $850. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 250 Units sold 225 Units in ending inventory 25 Variable costs per unit: Direct materials $ 100 Direct labor $ 320 Variable manufacturing overhead $ 40 Variable selling and administrative $ 20 Fixed costs: Fixed manufacturing overhead $ 60,000 Fixed selling and administrative $ 20,000 The absorption costing income statement prepared by the company’s accountant for last year appears below: Sales $ 191,250 Cost of goods sold 157,500 Gross margin 33,750 Selling and administrative expense 24,500 Net operating income $ 9,250 Required: Prepare an income statement for last year using variable costing.
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ces Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $936. 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 1. Absorption costing unit product cost 2. Variable costing unit product cost + 0 19,000 17,000 2,000 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. $ 200 $ 500 $58 $19 $ 720,000 $920,000
Ida Company produces a handcrafted musical Instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $850. 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 250 225 25 $ 100 $ 320 $ 40 $ 20 $ 60,000 $ 20,000 The absorption costing Income statement prepared by the company's accountant for last year appears below. Sales Cost of goods sold Gross margin $ 191,250 157,500 33,750 Selling and administrative expense 24,500 $ 9,250 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…