Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans

are sold for $$870.$ Selected data for the company's operations last year follow:

Units in beginning inventory $0$

Units produced $260$

Units sold $230$

Units in ending inventory $30$

Variable costs per unit:

Direct materials $ $ $105$

Direct labor $$325$

Variable manufacturing $$45$

overhead

Variable selling and $$15$

administrative

Fixed costs:

Fixed manufacturing overhead $$65,000$

Fixed selling and

administrative

$$21,000$

The absorption costing income statement prepared by the company's accountant for last year appears below:

Required:

Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at

the end of last year?

Prepare an income statement for last year using variable costing.