Ida sidha karya company is a family-owned company located
Question # 00767503
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Updated on: 06/25/2020 11:58 AM Due on: 07/07/2020
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: |
| 1. |
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: ____
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Rating:
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