Ida Sidha Karya Company is a family-owned company located 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 companys operations last year follow:

Units in beginning inventory		0
Units produced		300
Units sold		275
Units in ending inventory		25
Variable costs per unit:
Direct materials	$	125
Direct labor	$	345
Variable manufacturing overhead	$	45
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 companys accountant for last year appears below:

Sales	$	247,500
Cost of goods sold		199,375
Gross margin		48,125
Selling and administrative expense		34,625
Net operating income	$	13,500

Required:

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

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

Prepare an income statement for last year using variable costing.

Ida Sidha Karya Company
Variable Costing Income Statement
Sales		$247,500
Variable expenses:
Units sold	X $34,375
Units sold	X $94,875
Fixed manufacturing overhead	X $12,375
Variable selling and administrative expense	$9,625	151,250
Contribution margin		96,250
Fixed manufacturing overhead	63,000
Fixed selling and administrative expense	25,000
Fixed manufacturing overhead X		88,000
Net operating income		$8,250

Something is wrong, somebody help me plase