On January 1, 2020, Cullumber Company had Accounts Receivable $134,200, Notes Receivable $39,600, and Allowance for Doubtful Accounts $28,200. The note receivable is from Willingham Company. It is a 4-month, 8% note dated December 31, 2019. Cullumber Company prepares financial statements annually at December 31. During the year, the following selected transactions occurred. Jan. 5 Sold $35,600 of merchandise to Sheldon Company, terms n/15.
20 Accepted Sheldon Company’s $35,600, 3-month, 7% note for balance due.
Feb. 18 Sold $23,900 of merchandise to Patwary Company and accepted Patwary’s $23,900, 6-month, 8% note for the amount due.
Apr. 20 Collected Sheldon Company note in full.
30 Received payment in full from Willingham Company on the amount due.
May 25 Accepted Potter Inc.’s $19,800, 3-month, 6% note in settlement of a past-due balance on account.
Aug. 18 Received payment in full from Patwary Company on note due.
25 The Potter Inc. note was dishonored. Potter Inc. is not bankrupt; future payment is anticipated.
Sept. 1 Sold $13,000 of merchandise to Stanbrough Company and accepted a $13,000, 6-month, 9% note for the amount due.

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 $860. selected data for the company’s operations last year follow: units in beginning inventory 0 units produced 320 units sold 285 units in ending inventory 35 variable costs per unit: direct materials $ 135 direct labor $ 355 variable manufacturing overhead $ 30 variable selling and administrative $ 15 fixed costs: fixed manufacturing overhead $ 64,000 fixed selling and administrative $ 27,000 the absorption costing income statement prepared by the company’s accountant for last year appears below: sales $ 245,100 cost of goods sold 205,200 gross margin 39,900 selling and administrative expense 31,275 net operating income $ 8,625 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?