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

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 $766. 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 13,000 10,000 3,000 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 420 S 49 $ 18 Fixed costs Fixed manufacturing overhead Fixed selling and administrative s 870,000 $ 870,000 Required: at the company uses absorption costing Compute the unit product cost for one gamelan. (Round your intermediate calculations and final answer to nearest whole dollar.) nit product cost

Explanation / Answer

1 Direct materials 130 Direct labor 420 Variable manufacturing overhead 49 Fixed manufacturing overhead 67 =870000/13000 Unit product cost 666 2 Direct materials 130 Direct labor 420 Variable manufacturing overhead 49 Unit product cost 599

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