Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $733. 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 15,000 11,000 4,000 $ 120 $ 380 $ 50 $ 22 $ 950,000 $ 760,000 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
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $733. 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 15,000 11,000 4,000 $ 120 $ 380 $ 50 $ 22 $ 950,000 $ 760,000 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
$733. 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
15,000
11,000
4,000
$ 120
$ 380
$ 50
$ 22
$ 950,000
$ 760,000
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
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