XERCISE 5-2 Variable Costing Income Statement; Explanation of ifference in Net Operating Income LO 5-2] efer to the data in Exercise 5-1 for lda Sidha Karya Company. The bsorption costing income statement prepared by the company's ccountant for last year appears below: Sales .... Cost of goods sold Gross margin..... Selling and administrative expense. Net operating income.... $191,250 157,500 33,750 24,500 $ 9,250 z Z s, equired: 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. Explain the difference in net operating income between the two costing methods XERCISE 5-2 Variable Costing Income Statement; Explanation of ifference in Net Operating Income LO 5-2] efer to the data in Exercise 5-1 for lda Sidha Karya Company. The bsorption costing income statement prepared by the company's ccountant for last year appears below: Sales .... Cost of goods sold Gross margin..... Selling and administrative expense. Net operating income.... $191,250 157,500 33,750 24,500 $ 9,250 z Z s, equired: 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. Explain the difference in net operating income between the two costing methods