Question

Chapter 6 Exercises i Saved 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 $833. Selected data for the company's operations last year follow: 20 points 0 eBook 23,000 21,000 2,000 Hint 120 480 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 55 Print $ 18 References $ 650,000 $1,000,000 Required: 1. 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.) 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan. 4 Absorption costing unit product cost Variable costing unit product 4. cost

Answer 1

1.

Direct materials	$ 120
Direct labor	$ 480
Variable manufacturing overhead	$   55
Fixed manufacturing overhead ($650,000/23,000)	$   28
Variable costing unit product cost	$ 683

2.

Direct materials	$ 120
Direct labor	$ 480
Variable manufacturing overhead	$   55
Variable costing unit product cost	$ 655

You can reach me over comment box if you have any doubts. Please rate this answer