Homework SourseIda Sidha Karya Company is a familyowned company located in
Ida Sidha Karya Company is a family-owned company located in the village of Glanyar on the island of Ball 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. Selected data for the c year follow Units in beginning invento Units produced Units solo Units in ending inventory Variable costs per unit 250 225 25 2 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative s 100 $ 320 $ 40 $20 Fixed costs Fixed manufacturing overhead Fixed selling and administrative s 60,000 $ 20,000 Required: 1. Assume that the company uses absorption costing Compute the unit product cost for one gamelan. Unit product cost 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan Unit product cost
Solution
Answer
Working
Fixed manufacturing overhead
60000
Fixed Selling & Administrative overhead
20000
Total Fixed Costs
80000
Total units produced
250
Fixed cost per unit [80000/250]
$ 320
Direct Material per unit
100
Direct labor per unit
320
Variable manufacturing overhead per unit
40
variable selling & administrative exp per unit
20
Total variable cost per unit
480
Total fixed cost per unit
320
Total unit cost (ANSWER)
$ 800
Total variable cost per unit
480
Total Units sold
225
Total variable Cost incurred [480 x 225]
108000
Total Fixed Costs
80000
Total Cost
188000
Total units produced
250
Total cost per unit
752
| Fixed manufacturing overhead | 60000 |
| Fixed Selling & Administrative overhead | 20000 |
| Total Fixed Costs | 80000 |
| Total units produced | 250 |
| Fixed cost per unit [80000/250] | $ 320 |
