Ida Sidha Karya Company is a family-owned company located in the village of Glanyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $980. Selected data for the company's operations last year follow Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: 280 265 15 S 150 5 370 45 30 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs 5 70,000 5 30,000 Fixed manufacturing overhead Fixed selling and administrative The absorption costing income statement prepared by the company's accountant for last year appears below: Sales Cost of goods sold 5 259,700 215,975 Gross margin Selling and administrative expense 43,725 37,950 Net operating income S 5,775 Required 1 Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period 2. Prepare an income statement for the year using variable costing. a Sidha Karya Company Variable Costing Income Statement Variable expenses Fixed expenses