Ida Sidha Karya Company is a family-owned company located in the village of Gian
ID: 340741 • Letter: I
Question
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 for $860. Selected data for the company’s operations last year follow:
27,000
The absorption costing income statement prepared by the company’s accountant for last year appears below:
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 for $860. Selected data for the company’s operations last year follow:
Required: 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 ending nventory 2. Prepare an income statement for the year using variable costing Ida Sidha Karya Company Variable Costing Income Statement Variable expenses: Fixed expenses:Explanation / Answer
1. Fixed manufacturing overhead per unit = $64000/320 = $200
Total fixed manufacturing overhead in ending inventory = 35 x $200 = $7000
2.
Ida Sidha Karya Company Variable Costing Income Statement Sales 245100 Variable expenses: Direct materials (285 x $135) 38475 Direct labor (285 x $355) 101175 Manufacturing overhead (285 x $30) 8550 Selling and administrative (285 x $15) 4275 152475 Contribution margin 92625 Fixed expenses: Manufacturing overhead 64000 Selling and administrative 27000 91000 Net operating income 1625Related Questions
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