A B C Ida Sidha Karya Company is a familyowned company locat

A.

B.

C.

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. Selected data for the company\'s operations last year follow Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit 250 225 25 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative S 100 S 320 S 40 $ 20 Fixed costs Fixed manufacturing overhead Fixed selling and administrative 60,000 S 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

A.

Note:- As per guidelines I have answered the first question only. As there are different questions.

		Absorption	Variable
Units Product Cost:		Costing	Costing
		UPC (1)	UPC (2)
Units in BI	-
Units produced	250
Units sold	225
Units in EI	25
Variable costs per unit:
Direct materials	100	100	100
Direct labor	320	320	320
Variable MOH	40	40	40
Variable Selling and Admin	20
Fixed Costs:
Fixed MOH	60,000	240
Fixed Selling and Admin	20,000
Unit product cost		700	460