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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 $920. Selected data for the company's operations last year follow: Units in beginning inventory Units produced 275 Units sold 260 Units in ending inventory Variable costs per unit Direct materials Direct labor 15 110 320 Variable manu facturing overhead Variable selling and administrative 40 $ 15 Fixed costs: $ 77,000 33,000 Fixed manufacturing overhead Fixed selling and administrative The absorption costing income statement prepared by the company's accountant for last year appears below $239,200 195,000 44,200 Sales Cost of goods sold Gross margin Selling and administrative expense 36,900 7,300 Net operating income 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. What is the amount of the difference in net operating income between the two costing methods? Complete this question by entering your answers in the tabs below. Req 2A Req 2B Req 1 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 Req 1 Req 2A Complete this question by entering your answers in the tabs below. Req 2A Req 2B Req 1 Prepare an income statement for last year using variable costing Ida Sidha Karya Company Variable Costing Income Statement 0 0 $ > Req 1 Req 2B 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. What is the amount of the difference in net operating income between the two costing methods? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B What is the amount of the difference in net operating income between the two costing methods? Amount of the difference in net operating income Req 2A Req 2B

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