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[5] Assignment #7 (one) (— G IG) eztomheducetioneomfhmmx fii O i Bherdt Bicycie, located in india, produces an inexpensiwe yet rugged bicycle for use on crowded oilystreets. The company sells the bicycle For 585 rupees. (Indian currency is denominated in rupees, denotedtry R.) Selected data for the eampany’r. operations last year follow: Units in beg’nning inventory 0Units produud 15,850Units sold 12,900 in ending inventory 3.950ble costs per unit: Dlreot materials R 139 Direct labour R 176 Variable menulacturing overhead R BB Variable selling and administrative R 52Fixed mete: Fixed manufacturing overhead R960,450 Fixed selling and administrative M40500 r—= . An absorption costing income statement prepared by the company’s amuntant appears below: Seies [12,900 units 1 R585 per unit) R7,546,500Cost of goods sold:Beginning inventory R 0Add Goal of geode manufactured(16,850 units x R l per unit) 7,767,850Goods available torsele 7,757,350Le: endi inventury(3,950 units X R L Per unit) 1,820,950 5,948,900 Gross margin 1,599,500Selling and administrative exp-en – Variable seliing and ad ‘strativel 670,800Fixed selling and adminlstra‘tive 640,300 1,311,100Operating income R 288,500r-Required: 1. Determine how much of the ending inventory of R1,820,950 above consists of lixed menul’aamringoverhead cost deferred in inventory to the next period
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