Ida Sidha Karya Company is a family-owned company located in the village of Gianyar 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 $960. Selected data for the companys operations last year follow: Units in beginning inventory 0 Units produced 230 Units sold 200 Units in ending inventory 30 Variable costs per unit: Direct materials $ 110 Direct labor $ 320 Variable manufacturing overhead $ 30 Variable selling and administrative $ 10 Fixed costs: Fixed manufacturing overhead $ 69,000 Fixed selling and administrative $ 27,000 The absorption costing income statement prepared by the companys accountant for last year appears below: Sales $ 192,000 Cost of goods sold 152,000 Gross margin 40,000 Selling and administrative expense 29,000 Net operating income $ 11,000 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.