Required:

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

Prepare an income statement for the year using the variable costing method.

$\backslash$table$[[$IDA SIDHA KARYA COMPANY,,$],[$Variable Costing Income Statement,,$],[$Variable expenses:,,$],[,,],[,,],[$Fixed expenses:,,$],[,,],[,,]]$

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 $$860.$ Selected data for the company's operations last year follow:

$\backslash$table$[[$Units in beginning inventory,$0],[$Units produced,$320],[$Units sold,$285],[$Units in ending inventory,$35],[$Variable costs per unit:,$$135$Ida Sidha Karya Company is a family$-$owned company located in the village of Gianyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold to a Canadian importer for $$860.$ Selected data for the company's operations last year follow:

$\backslash$table$[[$Units in beginning inventory,$0],[$Units produced,$320],[$Units sold,$285],[$Units in ending inventory,$35],[$Variable costs per unit:,$],[$Direct materials,$135],[$Direct labour,$$35.$ Prepare an income statement for the year using the variable costing method.