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 $910. Selected data for the company's operations last year follow: Units in beginning inventory Units produced Units sold 0 300 265 35 Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 115 325 S 45 20 S 72,000 S34,000 The absorption costing income statement prepared by the company's accountant for last year appears below: S 241,150 192,125 Sales Cost of goods sold 49,025 Gross margin Selling and administrative expense 39,300 S 9,725 Net operating income 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 2. Prepare an income statement for the year using variable costing. Ida Sidha Karya Company Variable Costing Income Statement Variable expenses: Sales Fixed selling and administrative 0 Fixed expenses 0 Net operating income S 0