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 S870. Selected data for the company's operations last year follow Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative S 105 S 325 S 45 S 15 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative S 65,000 S 21,000 The absorption costing income statement prepared by the company's accountant for last year appears Sales Cost of goods sold 200,100 166,750 Gross margin Selling and administrative expense 33,350 24,450 Net operating income $ 8,900 Required: 1. Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period. Total fixed manufac 2. Prepare an income statement for the year using variable costing. Ida Sidha Karya Company Variable Costing Income Statement Variable expenses Fixed expenses

Explanation / Answer

1 Total fixed manufacturing overhead in ending inventory=65000/260*30= $7500 2 Sales 200100 Variable expenses: Variable cost of goods sold 109250 Variable selling and administrative expenses 3450 Total Variable expenses 112700 Contribution margin 87400 Fixed expenses: Fixed manufacturing overhead 65000 Fixed selling and administrative expenses 21000 Total Fixed expenses 86000 Net operatimg income(loss) 1400

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

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