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 Unite in ending inventory Variable costs per units Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed contar Fixed manufacturing overhead Fixed selling and administrative 250 225 25 $100 $320 $ 40 $ 20 $ 60,000 $20,000 Required: 1. Assume that the company uses absorption 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 $850. Selected data for the company's operations last year follow: Units in beginning inventory Units produced Units sold Unite in ending inventory Variable costs per units Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed contar Fixed manufacturing overhead Fixed selling and administrative 250 225 25 $100 $320 $ 40 $ 20 $ 60,000 $20,000 Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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 units
Direct materials
Direct labor
Variable manufacturing overhead
Variable selling and administrative
Fixed coater
Fixed manufacturing overhead
Fixed selling and administrative
0
250
225
25
1. Absorption costing unit product cost
2. Variable costing unit product cost
$100
$ 320
$40
$20
$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.
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