Wildcat Co. purchased, on open account, 4,000 pounds of direct materials at a total cost of $20,200. The standard cost of these materials, at $5.00 per pound, was $20,000. The company records any price variance for direct materials at point of purchase. During the current month 1,000 units of output were produced. Each unit of output, at standard, requires 2 pounds of direct materials, at $5.00 per pound. A total of 1,950 pounds of material was consumed in production during the month. The direct labor payroll for the period was $25,000 and has yet to be paid. The standard direct labor hours to produce each unit is 2 and the standard wage rate per hour is $11. The actual wage rate per hour was $10. The standard direct manufacturing cost for each unit is $32. During the month, 1,000 units were produced. During the month, 900 units were sold, at a price of $50 per unit. Record the journal entries for each of the events and transactions.

Exercise 6-2 variable costing income statement; explanation of difference in net operating income [lo6-2] ida sidha karya company is a family-owned company located 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 $970. selected data for the company’s operations last year follow: units in beginning inventory 0 units produced 200 units sold 180 units in ending inventory 20 variable costs per unit: direct materials $ 130 direct labor $ 300 variable manufacturing overhead $ 30 variable selling and administrative $ 15 fixed costs: fixed manufacturing overhead $ 63,000 fixed selling and administrative $ 25,000 the absorption costing income statement prepared by the company’s accountant for last year appears below: sales $ 174,600 cost of goods sold 139,500 gross margin 35,100 selling and administrative expense 27,700 net operating income $ 7,400 required: 1. under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. prepare an income statement for last year using variable costing.