chapter 6 hw - 6-1 Ida Sidha Karya Company is a family-owned company located in the cillage of Gianyar on the island of Bali in Indonesia company

chapter 6 hw - 6-1 Ida Sidha Karya Company is a...

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6-1.) xylophone. The gamelans are sold for $ 850.00 Select data for the company's operations last Units in beginning inventory….. - Units Produced……………………… 250 Units Sold………………………………. 225 Units in ending inventory……… 25 Variable cost per unit……………. Direct materials…………………….. $ 100 Direct labor……………………………. $ 320 Variable manufacturing OH…… $ 40 Variable S&A………………………….. $ 20 Fixed costs…………………………….. Fixed manufacturing OH…………. $ 60,000 Fixed S&A………………………………. $ 20,000 1.) Direct materials $ 100 Direct Labor $ 320 Variable manufacturing OH $ 40 Fixed manufacturing OH / PU $ 240 Fixed manufacturing OH ÷ Units Produced Absorption CPU $ 700 2.) Direct materials $ 100 Direct Labor $ 320 Variable manufacturing OH $ 40 Variable CPU $ 460 6-2.) Sales………………………………………. $ 191,250 Cost of Goods Sold………………… $ 157,500 Gross Margin………………………….. $ 33,750 Selling and Admin Expenses…. $ 24,500 Net Operating Income…………… $ 9,250 1.) Ida Sidha Karya Company is a family-owned company located in the cillage of Gianyar on the island of B company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a Assume that the company uses absorption costing . Compute the unit product cost for one gamelan. Assume that the company uses variable costing . Compute the unit product cost for one gamelan Refer to the data in Exercise 6-1 for Ida Sidha Karya Company. The absorption costing income stateme company's accountant for the last year appears below: Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred next period.
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Total fixed manufacturing overhead $ 60,000 Manufacturing overhead per unit $ 240 Ending Inventory $ 25 Fixed manufacturing OH for 25 units $ 6,000 2.) Amount In Sales (225 units X $850pu)………………………………………………………………………….. LESS: VARIABLE COST: Direct Materials (225 units X $100pu) $ 22,500 Direct Labor (225 units X $320) $ 72,000 Manufacturing Overhead (225 units X $40pu) $ 9,000 Selling & Administrative (225 units X $20pu) $ 4,500 Total Variable Cost Contribution Margin (Total Sales - Total Variable Cost) LESS: FIXED COSTS: Fixed manufacturing Overhead $ 60,000 Fixed Selling & Administrative $ 20,000 Total Fixed Cost Net Operating Income 6-3.) Inventories: Year 1 Year 2 Yea Beginning (units)…………………………………….. 200 170 Ending (units)………………………………………….. 170 180 Variable costing net operating income….. $ 1,080,400 $ 1,032,400 $ The company's fixed manufacturing overhead per unit was constant at $ 560 for all thr 1.) reconciliation report. Year 1 Year 2 Yea Beginning (units)…………………………………….. 200 170 Ending (units)………………………………………….. 170 180 Change in Inventories…………………………….. (30) 10 Prepare an income statement for the year using variable costing . Explain the difference in net operatin the two costing methods.
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