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Business, 27.03.2020 23:52 briweaver9993
Ida Sidha Karya Company is a family owned company located in the village of Gianyar 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 $850. Selcted data for the company's operations last year follow:Units in beginning inventory0Units produced250Units sold225Units in ending inventory25Variable cost per unit Direct materials$100 Direct labor$320 Variable manufacturing overhead$40 Variable selling and administrative$20Fixed costs: Fixed manufacturing overhead$60,000 Fixed selling and administrative$20,000Refer to the data in Exercise 5-1 for Ida Sidha Karya Company. The absorption costing income statement prepared by the company's accountant for last year appears below: sales$191,250 cost of goods sold157,500 gross margin33,750 selling and administrative expense24,500 net operating income$9,250 1. Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period. 2. Prepare an income statement for the year using variable costing. Explain the difference in net operating income between the two costing methods.
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Ida Sidha Karya Company is a family owned company located in the village of Gianyar on the island of...
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