Ida Sidha Karya Company is a family-owned company located in the village of Gian

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 $880. Selected data for the company’s operations last year follow:

23,000  

The absorption costing income statement prepared by the company’s accountant for last year appears below:

Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period.

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 $880. Selected data for the company’s operations last year follow:

Explanation / Answer

1 Total fixed manufacturing overhead in ending inventory =63000/280*40= $9000 Sales 211200 Variable expenses: Variable cost of goods sold 116400 Variable selling and administrative expenses 6000 Total Variable expenses 122400 Contribution margin 88800 Fixed expenses: Fixed manufacturing overhead 63000 Fixed selling and administrative expenses 23000 Total Fixed expenses 86000 Net operatimg income(loss) 2800

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.