How I can calculate and resolve this problem?Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $742. Selected data for the company’s operations last year follow: Units in beginning inventory 0Units produced 24,000Units sold 20,000Units in ending inventory 4,000Variable costs per unit: Direct materials$200Direct labor$350Variable manufacturing overhead$52Variable selling and administrative$23Fixed costs: Fixed manufacturing overhead$720,000Fixed selling and administrative$840,000 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.

Under absorption costing, fixed manufacturing overhead is treated as product cost. Under variable…

Answered: Ida Company produces a handcrafted…

Principles of Accounting Volume 2

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ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

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How I can calculate and resolve this problem?

Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $742. Selected data for the company’s operations last year follow:


Units in beginning inventory		0
Units produced		24,000
Units sold		20,000
Units in ending inventory		4,000
Variable costs per unit:
Direct materials	$	200
Direct labor	$	350
Variable manufacturing overhead	$	52
Variable selling and administrative	$	23
Fixed costs:
Fixed manufacturing overhead	$	720,000
Fixed selling and administrative	$	840,000

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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