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age o Gianyar on he t aineee musical insr ment caled a gamean that is smi i aco

ID: 2342782 • Letter: A

Question

age o Gianyar on he t aineee musical insr ment caled a gamean that is smi i aco ho e The ge o g a d das erina a n a s e s s Ida Sidha Kary o pa y 8 8 ami - ne company located in he operations last year follow: and o Ba in lndo osia. Tha o pany aroduces a and rafted olow: amiby-owned Urits in boginning nventory Units produced Units in anding invenlory Variable coss per unit: Diredt maberiais Variable manufacturing overhead Variable selling and administrative Fixed manufacturing overheed Fixed selling and administrative S 120 S 340 S 40 S 30 s 56,000 $ 24,000 The absorption costing income statement prapared by the cumpeny's accountant for last year sppears balow: 178.200 Cost of gcods sold Gruss margin Seling and administrative expense Net aperating noome 140,400 29.400 S 8,400 manufacturing avarhesd cost deferred in inventory to the next period 1. Determine haw much of the ending inventory consists of fixed nicome statament for the year using variable cosing able a

Explanation / Answer

Part 1

Fixed manufacturing overhead per unit (56000/200)...280

Ending inventory.........20

Total fixed manufacturing overhead in ending inventory = fixed manufacturing overhead per unit * ending inventory = 280*20 = 5600

Part 2

Ida Sidha Karya Company

Variable costing income statement

Total fixed manufacturing overhead in ending inventory $5600