Ida sidha karya company is a family-owned company located

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Reference no: EM13587709

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 $910. Selected data for the company's operations last year follow:


Units in beginning inventory		0
Units produced		300
Units sold		270
Units in ending inventory		30
Variable costs per unit:
Direct materials	$	140
Direct labor	$	350
Variable manufacturing overhead	$	35
Variable selling and administrative	$	15
Fixed costs:
Fixed manufacturing overhead	$	69,000
Fixed selling and administrative	$	26,000

The absorption costing income statement prepared by the company's accountant for last year appears below:


Sales	$	245,700
Cost of goods sold		203,850

Gross margin		41,850
Selling and administrative expense		30,050

Net operating income	$	11,800

Required:

Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period.

Total fixed manufacturing overhead in ending inventory: ____

2.	Prepare an income statement for the year using variable costing.

Reference no: EM13587709

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