Question

Ida Sidha Karya Company is a family-owned company located on the island of Bali in Indonesia....

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 $841. Selected data for the company’s operations last year follow:

Units in beginning inventory 0
Units produced 14,000
Units sold 11,000
Units in ending inventory 3,000
Variable costs per unit:
Direct materials $ 120
Direct labor $ 480
Variable manufacturing overhead $ 55
Variable selling and administrative $ 21
Fixed costs:
Fixed manufacturing overhead $ 650,000
Fixed selling and administrative $ 400,000

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.

Homework Answers

Answer #1

Requirement 1:

Unit product cost under Absorption costing

Particulars $
Direct Materials per unit 120.00
Direct Labor per unit 480.00
Variable manufacturing cost per unit 55.00
Fixed manufacturing cost per unit ($650,000 / 14,000 Units) 46.43
Total Unit Product cost 701.43
Unit product cost under Absorption costing for one gamelan = $701

Requirement 2:

Unit product cost under Variable costing

Particulars $
Direct Materials per unit 120.00
Direct Labor per unit 480.00
Variable manufacturing cost per unit 55.00
Total Unit Product cost 655.00
Unit product cost under variable costing for one gamelan = $655

All the best...

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Ida Sidha Karya Company is a family-owned company located on the island of Bali in Indonesia....
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 $852. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 23,000 Units sold 20,000 Units in ending inventory 3,000 Variable costs per unit: Direct materials $ 160 Direct labor $ 470 Variable manufacturing overhead $...
Ida Sidha Karya Company is a family-owned company located on the island of Bali in Indonesia....
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 $830. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 15,000 Units sold 12,000 Units in ending inventory 3,000 Variable costs per unit: Direct materials $ 250 Direct labor $ 360 Variable manufacturing overhead $...
Ida Sidha Karya Company is a family-owned company located on the island of Bali in Indonesia....
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 $1,003. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 25,000 Units sold 23,000 Units in ending inventory 2,000 Variable costs per unit: Direct materials $ 270 Direct labor $ 490 Variable manufacturing overhead $...
Ida Sidha Karya Company is a family-owned company located on the island of Bali in Indonesia....
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 $871. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 25,000 Units sold 22,000 Units in ending inventory 3,000 Variable costs per unit: Direct materials $ 230 Direct labor $ 440 Variable manufacturing overhead $...
Ida Sidha Karya Company is a family-owned company located on the island of Bali in Indonesia....
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 $863. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 19,000 Units sold 16,000 Units in ending inventory 3,000 Variable costs per unit: Direct materials $ 120 Direct labor $ 510 Variable manufacturing overhead $...
Ida Sidha Karya Company is a family-owned company located on the island of Bali in Indonesia....
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 $832. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 23,000 Units sold 20,000 Units in ending inventory 3,000 Variable costs per unit: Direct materials $ 180 Direct labor $ 430 Variable manufacturing overhead $...
Ida Sidha Karya Company is a family-owned company located on the island of Bali in Indonesia....
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 $1,043. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 10,000 Units sold 6,000 Units in ending inventory 4,000 Variable costs per unit: Direct materials $ 280 Direct labor $ 490 Variable manufacturing overhead $...
Ida Sidha Karya Company is a family-owned company located on the island of Bali in Indonesia....
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 $840. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 15,000 Units sold 12,000 Units in ending inventory 3,000 Variable costs per unit: Direct materials $ 240 Direct labor $ 360 Variable manufacturing overhead $...
Ida Sidha Karya Company is a family-owned company located on the island of Bali in Indonesia....
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 $...
Ida Sidha Karya Company is a family-owned company located on the island of Bali in Indonesia....
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 $980. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 280 Units sold 265 Units in ending inventory 15 Variable costs per unit: Direct materials $ 150 Direct labor $ 370 Variable manufacturing overhead $...