ACCOUNTING Chapter 6 Exercises value 20.00 points da Sidha Karya Company is a fa
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ACCOUNTING Chapter 6 Exercises value 20.00 points da Sidha Karya Company is a family-owned company located in the village of Glanyar on the island of Bal in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $712. 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 20,000 17,000 3,000 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative S 120 S 380 S 57 S 21 Fixed costs Fixed manufacturing overhead Fixed selling and administrative 690,000 $730,000 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 Hints References eBook & Resources Hint#1Explanation / Answer
1.
Absorption costing
Direct Material
120
Direct Labor
380
Variable Manufacturing Overheads
57
Fixed Manufacturing Overheads (690000/20000)
34.5
Unit Product cost
591.50
2.
Variable costing
Direct Material
120
Direct Labor
380
Variable Manufacturing Overheads
57
Unit Product cost
557
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Absorption costing
Direct Material
120
Direct Labor
380
Variable Manufacturing Overheads
57
Fixed Manufacturing Overheads (690000/20000)
34.5
Unit Product cost
591.50
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