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 $850. Selected data for the company's operations last year follow: 0 250 225 25 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 $ $ $ $ 100 320 40 20 $60,000 $20,000 An absorption costing income statement prepared by the company's accountant appears below: Sales Cost of goods sold $191, 250 157,500 Gross margin Selling and administrative expense 33, 750 24,500 Net operating income $ 9,250 Required: 1. Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period. Net operating income $ 9, 250 Required: 1. Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period. Total fixed manufacturing overhead in ending inventory $ 6,000 2. Prepare an income statement for the year using variable costing. 191,250 Ida Sidha Karya Company Variable Costing Income Statement Sales Variable expenses: Variable cost of goods sold Variable selling and administrative expense Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expense Net operating income 0 191,250 0 $ 191,250