20 3 points eBook Hint Prine References Ida Sidha Karya Company is a family-owned company located 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 $990. Selected data for the company's operations last year follow: Units in beginning inventory Units produced Units sold Units in ending inventory variable costs per units Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs Fixed nanufacturing overhead Fixed selling and administrative 0 240 225 15 $ 120 $ 330 $ 50 $ 25 $72,000 $27,000 The absorption costing income statement prepared by the company's accountant for last year appears below. Sales Cost of goods sold Cross margin Selling and administrative expense Net operating income Required: $222,750 180,000 42,750 32,625 $10,125 1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. Prepare an income statement for last year using variable costing. What is the amount of the difference in net operating income between the two costing methods? Complete this question by entering your answers in the tabs below. < Prev 3 of 6 Next >