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 $900. Selected data for the company's operations last year follow: 300 Units in beginning inventory Units produced Units sold 275 Units in ending inventory 25 Variable costs per unit: Direct materials $ 125 Direct labor $ 345 Variable manufacturing 45 overhead Variable selling and administrative $ 35 Fixed costs: Fixed manufacturing overhead $63,000 Fixed selling and administrative $25,000 $ The absorption costing income statement prepared by the company's accountant for last year appears below: Sales $247,500 Cost of goods sold 199,375 Gross margin Selling and administrative expense 48,125 34,625 Net onerating income $ 13 500 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $63,000 $25,000 The absorption costing income statement prepared by the company's accountant for last year appears below: Sales $247,500 Cost of goods sold 199,375 Gross margin Selling and administrative expense 48,125 34,625 Net operating income $ 13,500 Required: 1. Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred in inventory to the next period. Total foxed manufacturing overhead in ending inventory Total fixed manufacturing overhead in ending inventory 13 2. Prepare an income statement for the year using variable costing. Ida Sidha Karya Company Variable Costing Income Statement Variable expenses: o 0 COS Fixed expenses: $ 0