Ida Sidha Karya Company is a family-owned company located in the village of Glan
ID: 2514444 • Letter: I
Question
Ida Sidha Karya Company is a family-owned company located in the village of Glanyar 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 $990. 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:
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 Glanyar 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 $990. Selected data for the company’s operations last year follow:
Explanation / Answer
1) Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period.
2) Prepare an income statement for the year using variable costing.
Net operating income under absorption costing 10125 Less: Fixed manufacturing overhead deffered in ending inventory (300*15) -4500 Net operating income under variable costing 5625Related Questions
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