ACNT 2302 Hello I need help with the following question: 2 value 16.66 points Id

Question

ACNT 2302

Hello I need help with the following question:

2 value 16.66 points 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 $880. Selected data for the company's operations last year follow Units in beginning inventory Units produced Units solo Units in ending inventory Variable costs per unit: 0 280 240 40 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative S 115 S 335 S 35 S 25 Fixed costs Fixed manufacturing overhead Fixed selling and administrative $ 63,000 $ 23,000 The absorption costing income statement prepared by the company's accountant for last year appears below: Sales Cost of goods sold $ 211,200 170,400 Gross margin Selling and administrative expense 40,800 29,000 Net operating income $ 11,800 Required 1. Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period manufacturing over n ending inven

Explanation / Answer

a) Fixed manufacturing overhead in ending inventory = (63000/280)*40 = 9000

b) Prepare contribution margin income statement :

Sales (240*880) 211200 Less: Variable expenses Direct material (240*115) (27600) Direct labour (240*335) (80400) Variable manufacturing overhead (240*35) (8400) Variable selling and administrative expenses (240*25) (6000) Total variable expense (122400) Less: Fixed expenses 88800 Fixed manufacturing overhead (63000) Fixed selling and administrative expenses (23000) Total fixed expenses (86000) Net operating income 2800

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

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