Ida Company produces a handcrafted 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: Units in beginning inventory Units produced 250 Units sold 225 Units in ending inventory 25 Variable costs per unit: Direct materials $ 100 Direct labor $ 320 Variable manufacturing overhead $ 40 Variable selling and administrative $20 Fixed costs: Fixed manufacturing overhead $ 60,000 Fixed selling and administrative $ 20,000 The absorption costing income statement prepared by the company's accountant for last year appears below: Sa $ 191,250 Cost of goods sold 157,500 Gross margin 33,750 Selling and administrative expense 24,500 Net operating income $ 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for last year using variable costing. Ida Company Variable Costing Income Statement 191,250 Sales Variable expenses 9,000 182,250 0 $ 182,250