Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $850. 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 $ $ $ $ The absorption costing income statement prepared by the company's accountant for last year appears below: Required 1 $ Required 2 $ 191,250 157,500 0 250 225 25 $ 60,000 $ 20,000 100 320 40 20 33,750 24,500 9,250 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. Complete this question by entering your answers in the tabs below. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year?
Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $850. 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 $ $ $ $ The absorption costing income statement prepared by the company's accountant for last year appears below: Required 1 $ Required 2 $ 191,250 157,500 0 250 225 25 $ 60,000 $ 20,000 100 320 40 20 33,750 24,500 9,250 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. Complete this question by entering your answers in the tabs below. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The
company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are
sold for $850. 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
$
$
$
$
The absorption costing income statement prepared by the company's accountant for last year appears below:
Required 1
$
Required 2
$ 191,250
157,500
0
250
225
25
$ 60,000
$ 20,000
100
320
40
20
33,750
24,500
9,250
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.
Complete this question by entering your answers in the tabs below.
Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of
last year?
Transcribed Image Text: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.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of
last year?
Fixed manufacturing overhead cost included in inventory
< Required 1
Required:
1. Inder absorption costing, hot much
year?
d manufacturing overhead
2. Prepare an income statement for last year using variable costing.
Required 1 Required 2
Complete this question by entering your answers in the tabs below.
Prepare an income statement for last year using variable costing.
Ida Sidha Karya Company
Variable Costing Income Statement
Required 2 >
Required 1
Required 2 >
include
company's inventory
end last
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