lda Sidha Karya Company is a family-owned company located in the village of Gian

Question

lda 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 $796. 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 25,000 22,000 3,000 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative S 180 S 390 S 62 S 17 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 840,000 S 860.000 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 dollars.) cost 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan. cost

Explanation / Answer

1 Direct materials 180 Direct labor 390 Variable manufacturing overhead 62 Fixed manufacturing overhead 34 =840000/25000 Unit product cost 666 2 Variable costing: Direct materials 180 Direct labor 390 Variable manufacturing overhead 62 Unit product cost 632

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