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 $729. Selected data for the company’s operations last year follow:



  Units in beginning inventory

0

  Units produced

21,000

  Units sold

17,000

  Units in ending inventory

4,000

  Variable costs per unit:

       Direct materials

$ 100

       Direct labor

$ 390

       Variable manufacturing overhead

$ 62

       Variable selling and administrative

$ 18

  Fixed costs:

       Fixed manufacturing overhead

$ 980,000

       Fixed selling and administrative

$ 820,000



Required:

1.

Assume that the company uses absorption costing. Compute the unit product cost for one gamelan.



2.

Assume that the company uses variable costing. Compute the unit product cost for one gamelan.

pur-new-sol

Related Questions


Units in beginning inventory		0
Units produced		21,000
Units sold		17,000
Units in ending inventory		4,000
Variable costs per unit:
Direct materials		$ 100
Direct labor		$ 390
Variable manufacturing overhead		$ 62
Variable selling and administrative		$ 18
Fixed costs:
Fixed manufacturing overhead		$ 980,000
Fixed selling and administrative		$ 820,000