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 $990. Selected data for the companys operations last year follow:

Units in beginning inventory		0
Units produced		250
Units sold		230
Units in ending inventory		20
Variable costs per unit:
Direct materials	$	145
Direct labor	$	365
Variable manufacturing overhead	$	40
Variable selling and administrative	$	25
Fixed costs:
Fixed manufacturing overhead	$	65,000
Fixed selling and administrative	$	29,000

The absorption costing income statement prepared by the companys accountant for last year appears below:

Sales	$	227,700
Cost of goods sold		186,300
Gross margin		41,400
Selling and administrative expense		34,750
Net operating income	$	6,650

Required:

1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year?

Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year?

Fixed manufacturing overhead cost included in inventory

$5,200selected answer correct

2. Prepare an income statement for last year using variable costing.

I got some right and some wrong. can someone please explain and show me how to do this? Thanks

These are what I have for titles to pick from when making the income statement

Fixed manufacturing overhead Fixed selling and administrative expense Sales Units in beginning inventory Units in ending inventory Units produced Units sold Variable cost of goods sold Variable selling and administrative expense

Ida Sidha Karya Company
Variable Costing Income Statement
Salesselected answer correct		$227,700selected answer correct
Variable expenses:selected answer correct
Units soldselected answer incorrect	$33,350selected answer incorrect
Units producedselected answer incorrect	83,950selected answer incorrect
Variable cost of goods soldselected answer correct	$9,200selected answer incorrect
Variable selling and administrative expenseselected answer correct	$5,750selected answer correct	132,250
Contribution marginselected answer correct		95,450
Fixed expenses:selected answer correct
Fixed manufacturing overheadselected answer correct	65,000selected answer correct
Fixed selling and administrative expenseselected answer correct	29,000selected answer correct
not attempted	not attempted
Units in ending inventoryselected answer incorrect	not attempted	94,000
Net operating incomeselected answer correct		$1,450