Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $990. 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 Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income. 0 250 230 20 $ 65,000 $ 29,000 The absorption costing income statement prepared by the company's accountant for last year appears below: $ 227,700 186,300 41,400 34,750 $ 6,650 $145 $365 $ 40 $25 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. toring your answers in the tabs below.

Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $990. 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 Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income. 0 250 230 20 $ 65,000 $ 29,000 The absorption costing income statement prepared by the company's accountant for last year appears below: $ 227,700 186,300 41,400 34,750 $ 6,650 $145 $365 $ 40 $25 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. toring your answers in the tabs below.

Name: 1okintintencesGross marginSelling and administrative expenseNet opera
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Description: 1okintintencesGross marginSelling and administrative expenseNet operating incomeRequired:1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at thyear?2. Prepare an income statement for last

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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