Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a...
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Accounting
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $854. Selected data for the companys operations last year follow:
Units in beginning inventory
0
Units produced
21,000
Units sold
18,000
Units in ending inventory
3,000
Variable costs per unit:
Direct materials
$ 230
Direct labor
$ 390
Variable manufacturing overhead
$ 50
Variable selling and administrative
$ 17
Fixed costs:
Fixed manufacturing overhead
$ 710,000
Fixed selling and administrative
$ 1,000,000
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.
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