7:2.2

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 manutacturing 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 Cont of goods sold Gross margin Selling and administrative expense Net operating income 5 191,250 157,500 33,750 24,500 9,250 Req1 Reg 2A Req 2B Prepare an income statement for last year using variable costing. Ida Sidha Karya Company Variable Costing Income Statement Sales 191,250 S Variable cost of goods sold Variable selling and administrative expenses 103,500 4,500 108,000 83,250 Net operating income $ 83,250