7:2 practice

Ida Sidha Karya Company is a family-owned company located in the village of Glanyar on the island of Ball in Indonesia. The company produces a handcrafted Balinese musical Instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $850 Selected data for the company's operations last year follow: 0 250 225 25 Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Pixed manufacturing overhead Fixed selling and administrative $ $ $ $ 100 320 40 20 $ 60,000 $ 20,000 The absorption costing Income statement prepared by the company's accountant for last year appears as shown: Sales Cost of goods sold Grons margin Selling and administrative expense Not operating income $ 191,250 157.500 33, 750 24,500 $ 9,250 Required: 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? Reg 1 Req 2A Req 28 Prepare an income statement for last year using variable costing. Ida Sidha Karya Company Variable Costing Income Statement Reg 1 Req 2A Req 2B What is the amount of the difference in net operating income between the two costing methods? Amount of the difference in net operating income