Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ida company produces a handcrafted musical instrum

Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a...

90.2K

Verified Solution

Question

Accounting

Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $880. Selected data for the companys operations last year follow:

Units in beginning inventory 0
Units produced 280
Units sold 255
Units in ending inventory 25
Variable costs per unit:
Direct materials $ 105
Direct labor $ 315
Variable manufacturing overhead $ 35
Variable selling and administrative $ 40
Fixed costs:
Fixed manufacturing overhead $ 63,000
Fixed selling and administrative $ 32,000

The absorption costing income statement prepared by the companys accountant for last year appears below:

Sales $ 224,400
Cost of goods sold 173,400
Gross margin 51,000
Selling and administrative expense 42,200
Net operating income $ 8,800

Required:

1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year

Fixed manufacturing overhead cost included in inventory = ???

2. Prepare an income statement for last year using variable costing.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Assume you have a one-year investment horizon and are trying to choose among three bonds. All...

Physics
1.2K views

What kind of travel is theorized to be a feature of worm holes (which according to...

Electrical Engineering
1.2K views

A bandpass series filter has parameter values of R=150Ω , C=2μF and L=3mH . The filter is...

Physics
1.2K views

Solve the following ordinary differential equations by separating variables and integration. 1. y'sinx=ylny, the boundary condition (b.c.)...

Physics
1.2K views

A generator connected to the wheel or hub of a bicycle can be used to...

Statistics
1.2K views

II True or False 7 T or F An experiment is any activity that results...

Accounting
1.2K views

Land is purchased for $62,500. Back taxes paid by the purchaser were $7,500; total costs...

Accounting
1.2K views

Current assets totaled $60,000 and the current ratio was 1.2. Assume that the following transactions...

Accounting
1.2K views

Most businesses sell several products at varying prices. The products often have different unit variable...

Accounting
1.2K views

149 150 51 52 General Journal Account Title Date Debit Cres 04 5 During the...

Accounting
1.2K views

The 400 shares sold to the series C investors represent 13.35% of the company's The...

Accounting
1.2K views

Based on the data below, journalize each of the following adjustments 1) Beginning...