value 12.50 points Ida Sidha Karya Company is a family-owned company located in

Question

value 12.50 points 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 $887. Selected data for the company's operations last year follow Units in beginning inventory Units produced Units sol Units in ending inventory Variable costs per unit 19,000 17,000 2,000 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 220 $ 430 S 57 $ 21 Fbced costs Fixed manufacturing overhead Fixed selling and administrative 760,000 670,000 Required: 1. Assume that the company uses absorption costing Compute the unit product cost for one gamelan Unit product cost 2. Assume that the company uses variable costing Compute the unit product cost for one gamelan. Unit product cost Hints References eBook & Resources Hint#1

Explanation / Answer

1) Unit product cost under absorption costing :

2) Unit product cost under variable costing :

Direct material 220 Direct labour 430 Variable manufacturing overhead 57 Fixed manufacturing overhead (760000/19000) 40 Unit product cost 747

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