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 similar to a xylophone. The gamelans are sold for $990. Selected data for the company's operations last year follow a handcrafted Balinese musical instrument called a gamelan that is Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit 250 230 20 S 145 S 365 S 40 S 25 Direct materials Direct labor Variable selling and administrative Fixed manufacturing overhead Fixed costs: $ 65,000 $ 29,000 Fixed selling and administrative The absorption costing income statement prepared by the company's accountant for last year appears below $ 227,700 186,300 Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income 41,400 34,750 $ 6,650 Required 1. Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period. 10

Explanation / Answer

1 Fixed manufacturing overhead in ending inventory=65000/250*20= $5200 Sales 227700 Variable expenses: Variable cost of goods sold 126500 Variable selling and administrative expenses 5750 Total Variable expenses 132250 Contribution margin 95450 Fixed expenses: Fixed manufacturing overhead 65000 Fixed selling and administrative expenses 29000 Total Fixed expenses 94000 Net operatimg income(loss) 1450

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

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