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 companys operations last year follow: Units in beginning inventory 0 Units produced 300 Units sold 270 Units in ending inventory 30 Variable costs per unit: Direct materials $ 140 Direct labor $ 350 Variable manufacturing overhead $ 35 Variable selling and administrative $ 15 Fixed costs: Fixed manufacturing overhead $ 69,000 Fixed selling and administrative $ 26,000 The absorption costing income statement prepared by the companys accountant for last year appears below: Sales $ 245,700 Cost of goods sold 203,850 Gross margin 41,850 Selling and administrative expense 30,050 Net operating income $ 11,800 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 variable costing.