da Sidha Karya Company is a family-owned company located in the village of Glany

Question

da Sidha Karya Company is a family-owned company located in the village of Glanyar on the island of Bal in Indonesia. The company produces a handorafted Balinose musical instrument called a gamolan that is similar to a xylophone. The gamelans are sold for $850. Selected data for the company's operations last year follow Units in beginning inventory Units produced Units sold Units in ending inventorny Variable costs per unit 250 226 26 Direct materials Direct labor Variable manufacturing overhead Variable seling and administrative $ 100 $ 320 S 40 $ 20 Fixxed costs: Fixed manufacturing overhead Foxed seling and administrative 60,000 20,000 The absorption costing income statement prepared by the company's accountant for last year appears below Sales Cost of goods sold $ 191,250 57,500 Gross margin Selling and administrative expense 33,750 24,500 Net operating income 9.250 Required: 1. Defermine how much of the ending inventory consists of fused manufacturing overhead cost deferred in inventory to the next period

Explanation / Answer

fixed MOH overhead cost per unit = 60,000/250 240 Deferred = 25*240 6000 total fixed manufacturing overhead in ending inventory $6,000 Variable costing income statement sales 191,250 less:Variable expense Variable cost of goods sold (225*460) 103500 Variable selling & adm expense(225*20) 4500 108000 Contribution margin 83,250 Fixed expenses: fixed manufacturing overhead 60,000 fixed selling & adm expense 20,000 80,000 Net income 3,250 or if individual items are to be filled for variable expense then use this format Variable costing income statement sales 191,250 less:Variable expense Direct materials (225*100) 22,500 direct labor (225*320 72000 Variable MOH (225*40) 9000 Variable selling & adm expense(225*20) 4500 108000 Contribution margin 83,250 Fixed expenses: fixed manufacturing overhead 60,000 fixed selling & adm expense 20,000 80,000 Net income 3,250

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

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