Exercise 6-2 Variable Costing Income Statement; Explanation of Difference in Net Operating Income

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 xyloplone. The gamelans are sold for 5910. Selected data for the company?s operations last year follow: The absorption costing income statement prepared by the company?s accountant for last year appears below Required: Determine how much of the ending inventory consists of fixed manufacturing overhead cost deferred In inventory to the next period. Prepare an income statement for the year using variable costing