Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The companyproduces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $752.Selected data for the company's operations last year follow:Units in beginning inventoryUnits producedUnits sold021,00018,000Units in ending inventory3,000Variable costs per unit:Direct materials110Direct labor$420Variable manufacturing overhead$62Variable selling and administrative $19Fixed costs:Fixed manufacturing overheadFixed selling and administrative$850,000$480,000Required:1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. (Round your intermediatecalculations 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.1. Absorption costing unit product cost2. Variable costing unit product cost

Step 1: COST PER UNIT UNDER DIFFERENT COSTING METHODS Variable costing Absorption costing Direct…

Answered: Ida Sidha Karya Company is a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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XYZ owns a branch in New York. During the year, the home office shipped to the branch supplies costing P120,000 at a billed price of 20% above cost. The inventories of supplies at the branch were as follows: Beg Inventory, P90,000 Ending inventory P108,000. On December 31, the home office holds inventories of P160,500 which included P10,500 held on consignment. Both locations use the periodic inventory method. Compute for the inventories in a combined Statement of Financial Position as of December 31.
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Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 180 units at $49 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 265-unit purchase at $54 per unit; the second was a 390-unit purchase at $56 per unit. During the period, it sold 505 chairs. Required Determine the amount of product costs that would be allocated to cost of goods sold and ending inventory, assuming that Cortez uses a. FIFO. b. LIFO. c. Weighted average. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Cost of goods sold Ending inventory FIFO LIFO Weighted Average
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LLP sells copiers. At December 31, 2001. LLP’s inventory amounted to $400,000. During the first week of January 2002, the company made only one purchase and one sale. These transactions were as follows: Jan. 2 Purchased 50 machines from Twin, Inc. The total cost of these machines was $30,000, terms 3/10, n/60. Jan. 6 Sold 20 different types of products on account to Space Corporation. The total sales price was $25,000, terms 5/10, n/90. The total cost of these 20 units of LLP was $13,000 (net of the purchase discount.) LLP has a full-time accountant and a computer-based accounting system. It records sales at the gross sales price and purchases at net cost and maintains subsidiary ledgers for accounts receivable, inventory, and accounts payable. Instructions Computer the balance in the Inventory controlling account at the close of business on January 6.
CPI sells computer peripherals. At December 31, 2011, CPI’s inventory amounted to $500,000.During the first week in January 2012, the company made only one purchase and one sale. Thesetransactions were as follows:Jan. 2 Purchased 20 modems and 80 printers from Sharp. The total cost of these machineswas $25,000, terms 3/10, n/60.Jan. 6 Sold 30 different types of products on account to Pace Corporation. The total salesprice was $10,000, terms 5/10, n/90. The total cost of these 30 units to CPI was $6,100(net of the purchase discount).CPI has a full-time accountant and a computer-based accounting system. It records sales at the gross sales price and purchases at net cost and maintains subsidiary ledgers for accounts receiv-able, inventory, and accounts payable. Instructions a. Briefly describe the operating cycle of a merchandising company. Identify the assets and lia-bilities directly affected by this cycle. b. Prepare journal entries to record these transactions, assuming that CPI uses…

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