Homework Help is Here – Start Your Trial Now!
Business
Accounting
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $980. 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 0 280 265 15 Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income $ 150 $ 370 $45 $ 30 $ 70,000 $ 30,000 The absorption costing income statement prepared by the company's accountant for last year appears below: $ 259,700 215,975 43,725 37,950 $ 5,775 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 $980. 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 0 280 265 15 Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income $ 150 $ 370 $45 $ 30 $ 70,000 $ 30,000 The absorption costing income statement prepared by the company's accountant for last year appears below: $ 259,700 215,975 43,725 37,950 $ 5,775 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.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 16E: Kildeer Company makes easels for artists. During the last calendar year, a total of 30,000 easels...
See similar textbooks
icon
Related questions
Question
100%
Drop down options: Fixed manufacturing overhead Fixed selling and administrative expense Sales Units in beginning inventory Units in ending inventory Units produced Units sold Variable cost of goods sold Variable selling and administrative expense
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $980. 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 0 280 265 15 Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income $ 150 $ 370 $ 45 $ 30 $ 70,000 $ 30,000 The absorption costing income statement prepared by the company's accountant for last year appears below: $ 259,700 215,975 43,725 37,950 $ 5,775 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.
Transcribed Image Text:Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $980. 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 0 280 265 15 Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income $ 150 $ 370 $ 45 $ 30 $ 70,000 $ 30,000 The absorption costing income statement prepared by the company's accountant for last year appears below: $ 259,700 215,975 43,725 37,950 $ 5,775 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.
Prepare an income statement for last year using variable costing. Ida Company Variable Costing Income Statement Sales Variable expenses: Variable cost of goods sold Variable selling and administrative expense Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expense Net operating income < $ 215,975 X 37,950 Required 1 70,000 30,000 $ 259,700 253,925 5,775 100,000 $ (94,225) Required 2 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
Transcribed Image Text:Prepare an income statement for last year using variable costing. Ida Company Variable Costing Income Statement Sales Variable expenses: Variable cost of goods sold Variable selling and administrative expense Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expense Net operating income < $ 215,975 X 37,950 Required 1 70,000 30,000 $ 259,700 253,925 5,775 100,000 $ (94,225) Required 2 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Value Chain Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
SEE MORE TEXTBOOKS