Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $914. Selected data for the company's operations last year follow: Units in beginning inventory Units produced 19,000 Units sold 15,000 Units in ending inventory 4,000 Variable costs per unit: Direct materials 270 Direct labor 410 Variable manufacturing overhead 62 Variable selling and administrative 20 Fixed costs: Fixed manufacturing overhead 800,000 Fixed selling and administrative 780,000 Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. (Round your Intermedlate 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. %24
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
![Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone.
The gamelans are sold for $914. Selected data for the company's operations last year follow:
Units in beginning inventory
Units produced
19,000
Units sold
15,000
Units in ending inventory
4,000
Variable costs per unit:
Direct materials
270
Direct labor
410
Variable manufacturing overhead
62
Variable selling and administrative
20
Fixed costs:
Fixed manufacturing overhead
800,000
Fixed selling and administrative
780,000
Requlred:
1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan.
(Round your Intermedlate calculatlons 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.
%24
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