Ida Sidha Karya Company is a family-owned company located on the island of Ball in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $880. 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 0 Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income 280 255 $ 105 S 315 Variable manufacturing overhead S 35 Variable selling and administrative S 40 Fixed costs: Fixed manufacturing overhead $ 63,000 Fixed selling and administrative $ 32,000 Required: 25 The absorption costing income statement prepared by the company's accountant for last year appears below: $ 224,400 173,400 51,000 42,200 $ 8,800 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. 1 10:24 ✓

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Ida Sidha Karya Company is a family-owned company located 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 $860.
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
0
Sales
Cost of goods sold
Gross margin
Selling and administrative expense
Net operating income
280
255
$ 105
S 315
Variable manufacturing overhead S 35
Variable selling and administrative S 40
Fixed costs:
Fixed manufacturing overhead $ 63,000
Fixed selling and administrative $ 32,000
Required:
25
The absorption costing income statement prepared by the company's accountant for last year appears below:
$ 224,400
173,400
51,000
42,200
$ 8,800
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.
1 10:24 ✓
Transcribed Image Text:Ida Sidha Karya Company is a family-owned company located 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 $860. 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 0 Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income 280 255 $ 105 S 315 Variable manufacturing overhead S 35 Variable selling and administrative S 40 Fixed costs: Fixed manufacturing overhead $ 63,000 Fixed selling and administrative $ 32,000 Required: 25 The absorption costing income statement prepared by the company's accountant for last year appears below: $ 224,400 173,400 51,000 42,200 $ 8,800 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. 1 10:24 ✓
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