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: Units in beginning inventory Units produced Units sold Units in ending inventory 0 500 450 50 Variable costs per unit: Direct materials 150 Direct labour $ 270 Variable manufacturing overhead $ 40 Variable selling and administrative $ 25 Fixed costs: Fixed manufacturing overhead $120,000 Fixed selling and administrative $ 40,000 An absorption costing income statement prepared by the company's accountant appears below: Sales Cost of goods sold Gross margin Selling and administrative expenses Operating income $382,500 315,000 67,500 51,250 $ 16,250 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