Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $$910.$ Selected data for the company's operations last year follow:

Units in beginning inventory

Units produced

$300$

Units sold

$270$

Units in ending inventory

$30$

Variable costs per unit:

Direct materials

$$140$

Direct labor

$$350$

Variable manufacturing overhead

$$35$

Variable selling and administrative

$$15$

$$69,000$

Fixed costs:

Fixed manufacturing overhead

Fixed selling and administrative

$0$

$ $26,000$

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

Sales

Cost of goods sold

$203,850$

Gross margin

$41,850$

Selling and administrative expense

$30,050$

Net operating income

$$11,800$

Required:

$1.$ Under absorption costing, how much fixed manufacturing overhead cost is included in the company's Inventory at the end of last year?

$2.$ Prepere an income statement for last year using variable costing.

Complete this question by entering your answers in the tabs below.

Required $1$ Required $2$

Under absorption costing, how much fixed manufacturing overhead cost is included in the companvis inventory at the end of last year?