ida Sidha Ke om pany a am -o nod oompany located in te lage o Ganyer on the le d

Question

ida Sidha Ke om pany a am -o nod oompany located in te lage o Ganyer on the le d 0 a in Indonesa. The company produces a handa fed elinese musca ins r ent caled a gemelen that m lar to a x Oph one. The ans are for S8 elected data or the o mpany's operations st year o o Units in beginning nventory Units produced Units in ending inventory S 115 Direct labor arisble seling and 8cminsratve Faed selng and admiristrative 5 335 S 25 S 63000 Fxed cce S 23000 boow The abeorption costing inoomo staement proparod by the company's accountant for last yoar appears bo ow: Cost of goods sold Groas margn Selng and administraive expense Nat eporaing insome 1. Determine hw much of the ending inventory oonsists cf fixed manufactring overhead coet deferred in inventory to the next period. 2 Prepare an income statement for the year using variable costing. da Sidha Karya Company

Explanation / Answer

1)Fixed manufacturing overhead deferred in ending inventory = fixed manufacturing overhead * ending inventory /unit produced

   = 63000*40/280

      = $9000

2)

Variable costing Income statement sales 211200 less:variable expense variable manufacturing cost [(115+335+35)*240] 116400 variable selling and administation cost [25*240] 6000 Total variable expense (122400) Contribution margin 88800 less:fixed cost Fixed manufacturing cost 63000 Fixed selling and administation cost 23000 Total fixed cost (86000) net operating income 2800

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