Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $850. 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 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 0 250 225 25 1. Absorption costing unit product cost 2. Variable costing unit product cost $ 100 $ 320 $ 40 $20 $ 60,000 $ 20,000 Required: 1. Assume the company uses absorption costing. Compute the unit product cost for one gamelan. 2. Assume the company uses variable costing. Compute the unit product cost for one gamelan.

Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $850. 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 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 0 250 225 25 1. Absorption costing unit product cost 2. Variable costing unit product cost $ 100 $ 320 $ 40 $20 $ 60,000 $ 20,000 Required: 1. Assume the company uses absorption costing. Compute the unit product cost for one gamelan. 2. Assume the company uses variable costing. Compute the unit product cost for one gamelan.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...

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