Ida Sidha Karya Company is a family-owned company located in the village of Glanyar 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 $1,022. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 19,000 Units sold 15,000 Units in ending inventory 4,000 Variable costs per unit: Direct materials $ 280 Direct labor $ 520 Variable manufacturing overhead $ 54 Variable selling and administrative $ 19 Fixed costs: Fixed manufacturing overhead $ 910,000 Fixed selling and administrative $ 460,000 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 nearest whole dollar.) 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan.
Ida Sidha Karya Company is a family-owned company located in the village of Glanyar 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 $1,022. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 19,000 Units sold 15,000 Units in ending inventory 4,000 Variable costs per unit: Direct materials $ 280 Direct labor $ 520 Variable manufacturing overhead $ 54 Variable selling and administrative $ 19 Fixed costs: Fixed manufacturing overhead $ 910,000 Fixed selling and administrative $ 460,000 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 nearest whole dollar.) 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan.
Cornerstones of Cost Management (Cornerstones Series)
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ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
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Ida Sidha Karya Company is a family-owned company located in the village of Glanyar 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 $1,022. Selected data for the company’s operations last year follow: |
Units in beginning inventory | 0 | |
Units produced | 19,000 | |
Units sold | 15,000 | |
Units in ending inventory | 4,000 | |
Variable costs per unit: | ||
Direct materials | $ 280 | |
Direct labor | $ 520 | |
Variable manufacturing overhead | $ 54 | |
Variable selling and administrative | $ 19 | |
Fixed costs: | ||
Fixed manufacturing overhead | $ 910,000 | |
Fixed selling and administrative | $ 460,000 | |
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 nearest whole dollar.) |
2. |
Assume that the company uses variable costing. Compute the unit product cost for one gamelan. |
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