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 $855. Selected data for the company’s operations last year follow:

  

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 $855. Selected data for the company’s operations last year follow:

Required 1. Assume that the companyuses absotion costing Compue the uni product cost for one gamelan Unit product cost 2. Assume that the company uses variable costing Compute the unit product cost for one gamelan Unit product cost

Explanation / Answer

Solution 1:

Solution 2:

Computation of Unit Product Cost of Gamelans - Absorption Costing Particulars Unit Cost Direct Material $120.00 Direct Labor $490.00 Variable manufacturing overhead $64.00 Fixed Manufacturing Overhead ($860,000/17000) $50.59 Unit Product Cost $724.59

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