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Exercise 7-1(Algo) Variable and Absorption Costing Unit Product Costs [LO7-1] Ida Company produces...

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Accounting

Exercise 7-1(Algo) Variable and Absorption Costing Unit Product Costs [LO7-1]
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $897. 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 $ 120
Variable manufacturing overhead $510
Variable selling and administrative ,$61
Fixed costs:
015,00013,0002,000
Fixed manufacturing overhead
Fixed selling and administrative
$840,000
$640,000
Required:
Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Assume that the company uses variable costing. Compute the unit product cost for one gamelan.
Absorption costing unit product cost
Variable costing unit product cost
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