### Ida Company Manufacturing and Financial Data Overview**Company Overview:**Ida Company produces a handcrafted musical instrument called a gamelan, similar to a xylophone. Each gamelan is sold for $880. The following provides selected data for the company's operations last year.#### Operational Data:- **Units in beginning inventory:** 0- **Units produced:** 280- **Units sold:** 240- **Units in ending inventory:** 40#### Cost Data:**Variable costs per unit:**- Direct materials: $115- Direct labor: $335- Variable manufacturing overhead: $35- Variable selling and administrative: $25**Fixed costs:**- Fixed manufacturing overhead: $63,000- Fixed selling and administrative: $23,000**Graphical/Diagram Explanation:**While there are no graphical charts or diagrams in this dataset, we are provided with a clear, tabulated breakdown of both variable costs, which change with the number of units produced or sold, and fixed costs, which remain constant regardless of the production volume.### Absorption Costing Income StatementThe accountant has prepared the following absorption costing income statement for the last fiscal year:- **Sales:** $211,200- **Cost of goods sold:** $170,400- **Gross margin:** $40,800- **Selling and administrative expense:** $29,000- **Net operating income:** $11,800### Required Tasks:1. **Fixed Manufacturing Overhead Cost in Inventory under Absorption Costing:** - Determine the fixed manufacturing overhead cost included in the company's ending inventory. 2. **Income Statement Using Variable Costing:** - Prepare a new income statement for the last year utilizing the variable costing method.### Detailed Explanation for Educational Purposes:- **Absorption Costing:** Absorption costing includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product. Some of the fixed manufacturing overhead is included in inventory costs under this method.- **Variable Costing:** Variable costing includes only the variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) in the product cost, treating fixed manufacturing overhead as a period expense.By examining these two methods, students can understand the impact different costing methods have on the financial statements and the overall understanding of business profitability. **Variable Costing Income Statement Preparation**---**Instructions:**Complete this question by entering your answers in the tabs below.**Required 1** | **Required 2****Instruction Text:**Prepare an income statement for last year using variable costing.---**Ida Company****Variable Costing Income Statement**| | ||---------------|---------------|| **Variable Costing Income Statement** | || Sales Revenue | \[Input\] || Less: Variable Costs | || Variable Cost of Goods Sold | \[Input\] || Variable Selling & Administrative Expenses | \[Input\] || Total Variable Costs | \[Input (0)] || Contribution Margin | \[Input\] || Less: Fixed Costs | || Fixed Manufacturing Overhead | \[Input\] || Fixed Selling & Administrative Expenses | \[Input\] || Total Fixed Costs | \[Input (0)] || Operating Income | \[Input\] |---Navigate to 'Required 1' tab to fill in the necessary details. When complete, move on to 'Required 2'.

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Description: ### Ida Company Manufacturing and Financial Data Overview**Company Overview:**Ida Company produces a handcrafted musical instrument called a gamelan, similar to a xylophone. Each gamelan is sold for $880. The following provides selected data for the

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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 $880. Selected data for the company's operations last year follow: Units in beginning inventory Units produced Units sold 280 240 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 40 115 335 35 25 $ 63,000 $ 23,000 The absorption costing income statement prepared by the company's accountant for last year appears below: $ 211,200 170,400 40,800 29,000 $ 11,800 Sales Cost of goods sold Gross margin Selling and administrative expense 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.

Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $880. Selected data for the company's operations last year follow: Units in beginning inventory Units produced Units sold 280 240 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 40 115 335 35 25 $ 63,000 $ 23,000 The absorption costing income statement prepared by the company's accountant for last year appears below: $ 211,200 170,400 40,800 29,000 $ 11,800 Sales Cost of goods sold Gross margin Selling and administrative expense 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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 $752. 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 15,000 12,000 3,000 1. Absorption costing unit product cost 2. Variable costing unit product cost $ 170 $340 $ 57 $ 20 $ 830,000 $ 970,000 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.
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $880. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 280 Units sold 240 Units in ending inventory 40 Variable costs per unit: Direct materials $115 Direct labor $ 335 Variable manufacturing overhead $ 35 Variable selling and administrative $ 25 Fixed costs: Fixed manufacturing overhead $ 63,000 Fixed selling and administrative $ 23,000 The absorption costing income statement prepared by the company’s accountant for last year appears below: Sales $ 211,200 Cost of goods sold 170,400 Gross margin 40,800 Selling and administrative expense 29,000 Net operating income $ 11,800 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…
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $917. 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 13,000 9,000 4,000 1. Absorption costing unit product cost 2. Variable costing unit product cost $ 210 $ 440 $ 58 $18 $ 770,000 $ 550,000 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.
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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 $990. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 200 Units sold 180 Units in ending inventory 20 Variable costs per unit: Direct materials $ 120 Direct labor $ 340 Variable manufacturing overhead $ 40 Variable selling and administrative $ 30 Fixed costs: Fixed manufacturing overhead $ 56,000 Fixed selling and administrative $ 24,000 The absorption costing income statement prepared by the company’s accountant for last year appears below: Sales $ 178,200 Cost of goods sold 140,400 Gross margin 37,800 Selling and administrative expense 29,400 Net operating income $ 8,400 Required: 1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of…
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $960. Selected data for the company's operations last year follow: Units in beginning inventory Units produced Units sold 230 200 Units in ending inventory Variable 30 costs per unit: Direct materials Direct labor $4 %24 $4 110 320 Variable manufacturing overhead Variable selling and administrative Fixed costs: 30 10 Fixed manufacturing overhead Fixed selling and administrative $ 69,000 $ 27,000 The absorption costing income statement prepared by the company's accountant for last year appears below: $ 192,000 152,000 Sales Cost of goods sold Gross margin Selling and administrative expense 40,000 29,000 Net operating income 11,000 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…
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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 $840. 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 The absorption costing income statement prepa Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income 0 300 275 25 $ 100 $310 $ 30 $ 35 $ 66,000 $ 31,000 by the company's accountant for last year appears below: $ 231,000 181,500 49,500 40,625 $ 8,875 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.
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $850. Selected data for the company's operations last year follow: Units in beginning inventory Units produced 250 Units sold 225 Units in ending inventory Variable costs per unit: 25 2$ $ Direct materials 100 Direct labor 320 Variable manufacturing overhead Variable selling and administrative Fixed costs: 40 20 Fixed manufacturing overhead Fixed selling and administrative $ 60,000 $ 20,000 Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. 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