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 to a Canadian importer for $860. 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: Direct materials. Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Sales Cost of goods sold Gross margin Selling and administrative expenses Operating income $ SSSS Total fixed manufacturing overhead in ending inventory $ $ $ 0 320 285 35 An absorption costing income statement prepared by the company's accountant appears below: 135 355 30 15 $ 64,000 $ 27,000 $245, 100 205,200 39,900 31,275 $ 8,625 Required: 1. Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period.

Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the isiand 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 to a Canadian importer for $860. Selected data for the company's operations last year follow: An absorption costing income statement prepared by the company's accountant appears below: 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 the variable costing method