owesubject-Accounting Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The companyproduces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold to aCanadian importer for $910. Selected data for the company's operations last year follow:Units in beginning inventoryUnits producedUnits soldUnits in ending inventoryVariable costs per unit:Direct materials -Direct labourVariable manufacturing overheadVariable selling and administrative.Fixed costs:Fixed manufacturing overheadFixed selling and administrative$$SalesCost of goods sold iGross marginSelling and administrative expensesOperating income$$30027030$69,000$ 26,000An absorption costing income statement prepared by the company's accountant appears below:$245,700203,850140350351541,85030,050$ 11,800the d requirea:1. Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period.Total fixed manufacturing overhead in onding inventory2. Prepare an income statement for the year using the variable costing method.Variable expensesFixed expensesIDA SIDHA KARYA COMPANYVariable Costing Income StatementS0000

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Description: owesubject-Accounting Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The companyproduces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophon

Contribution margin=Sales - variable costNet operating income = Contribution margin - fixed expenses

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Accounting

requirea: . Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period. Total fixed manufacturing overhead in onding inventory 2. Prepare an income statement for the year using the variable costing method. IDA SIDHA KARYA COMPANY Variable Costing Income Statement Variable expenses Fixed expenses 0 0 0 0

requirea: . Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period. Total fixed manufacturing overhead in onding inventory 2. Prepare an income statement for the year using the variable costing method. IDA SIDHA KARYA COMPANY Variable Costing Income Statement Variable expenses Fixed expenses 0 0 0 0

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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owe

subject-Accounting

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 to a
Canadian importer for $910. 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 labour
Variable manufacturing overhead
Variable selling and administrative.
Fixed costs:
Fixed manufacturing overhead
Fixed selling and administrative
$
$
Sales
Cost of goods sold i
Gross margin
Selling and administrative expenses
Operating income
$
$
300
270
30
$
69,000
$ 26,000
An absorption costing income statement prepared by the company's accountant appears below:
$245,700
203,850
140
350
35
15
41,850
30,050
$ 11,800
the d

requirea:
1. Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period.
Total fixed manufacturing overhead in onding inventory
2. Prepare an income statement for the year using the variable costing method.
Variable expenses
Fixed expenses
IDA SIDHA KARYA COMPANY
Variable Costing Income Statement
S
0
0
0
0

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