Item
points
eBookHintPrintReferencesCheck my workCheck My Work button is now enabledItem
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $ Selected data for the companys 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 $
The absorption costing income statement prepared by the companys accountant for last year appears below:
Sales $
Cost of goods sold
Gross margin
Selling and administrative expense
Net operating income $
Required:
Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year?
Prepare an income statement for last year using variable costing.
