Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The
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Question:
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $874. Selected data for the company’s operations last year follow:
Units in beginning inventory | 0 |
---|---|
Units produced | 10,000 |
Units sold | 7,000 |
Units in ending inventory | 3,000 |
Variable costs per unit: | |
Direct materials | $ 240 |
Direct labor | $ 390 |
Variable manufacturing overhead | $ 46 |
Variable selling and administrative | $ 20 |
Fixed costs: | |
Fixed manufacturing overhead | $ 880,000 |
Fixed selling and administrative | $ 880,000 |
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.
Related Book For
Managerial Accounting
ISBN: 9781260247787
17th Edition
Authors: Ray Garrison And Eric Noreen And Peter Brewer
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