1- Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows.

Manufacturing costs

Direct materials $35 per unit

Direct labor $55 per unit

Overhead costs

Variable $20 per unit

Fixed $8,400,000(per year)

Selling and administrative costs for the year

Variable $750,000

Fixed $4,500,000

Production and sales for the year

Units produced105,000 units

Units sold75,000 units

Sales price per unit $360 per unit

1) income statement for the year using variable costing.

2) income statement for the year using absorption costing.

2- Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,025 kayaks and sold 775 at a price of $1,025 each. At this first year-end, the company reported the following income statement information using absorption costing.

Sales (775 $1,025) $794,375

Cost of goods sold (775 $450) 348,750

Gross margin445,625

Selling and administrative expenses210,000

Net income$235,625

1. Product cost per kayak totals $450, which consists of $350 in variable production cost and $100 in fixed production costthe latter amount is based on $102,500 of fixed production costs allocated to the 1,025 kayaks produced.
2. The $210,000 in selling and administrative expense consists of $85,000 that is variable and $125,000 that is fix

1) income statement for the current year under variable costing.

2)Fill in the blanks:

3- Rey Company's single product sells at a price of $229 per unit. Data for its single product for its first year of operations follow.

Direct materials $33 per unit

Direct labor $41per unit

Overhead costs

Variable overhead $11per unit

Fixed overhead per year $351,000per year

Selling and administrative expenses

Variable $31per unit

Fixed $226,000per year

Units produced and sold27,000units

1) income statement for the year using absorption costing

2) income statement for the year using variable costing.

4-Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting. For its first month of operations, 425 bikes were produced and 255 were sold; this left 170 bikes in ending inventory. The income statement information under variable costing follows.

Sales (255 $1,725) $439,875

Variable product cost (255 $600)153,000

Variable selling and administrative expenses (255 $60)15,300

Contribution margin271,575

Fixed overhead cost68,000

Fixed selling and administrative expense90,000

Net income$113,575

1) company's income statement for its first month of operations under absorption costing.

2)Fill in the blanks:

5- Oak Mart, a producer of solid oak tables, reports the following data from its second year of business.

Sales price per unit $300per unit

Units produced this year120,000units

Units sold this year123,500units

Units in beginning-year inventory3,500units

Beginning inventory costs

Variable (3,500 units $135) $472,500

Fixed (3,500 units $70) 245,000

Total $717,500

Manufacturing costs this year

Direct materials $44 per unit

Direct labor $62 per unit

Overhead costs this year

Variable overhead $3,000,000

Fixed overhead $7,000,000

Selling and administrative costs this year

Variable $1,400,000

Fixed4,400,000

1)Prepare the current-year income statement for the company using variable costing.

6- Oak Mart, a producer of solid oak tables, reports the following data from its second year of business.

Sales price per unit $300 per unit

Units produced this year120,000 units

Units sold this year123,500 units

Units in beginning-year inventory3,500units

Beginning inventory costs

Variable (3,500 units $135) $472,500

Fixed (3,500 units $70)245,000

Total $717,500

Manufacturing costs this year

Direct materials $44 per unit

Direct labor $62 per unit

Overhead costs this year

Variable overhead $3,000,000

Fixed overhead $7,000,000

Selling and administrative costs this year

Variable $1,400,000

Fixed4,400,000

2)Prepare the current-year income statement for the company using absorption costing.

7- Oak Mart, a producer of solid oak tables, reports the following data from its second year of business.

Sales price per unit $300 per unit

Units produced this year120,000 units

Units sold this year123,500 units

Units in beginning-year inventory3,500 units

Beginning inventory costs

Variable (3,500 units $135) $472,500

Fixed (3,500 units $70) 245,000

Total $717,500

Manufacturing costs this year

Direct materials $44 per unit

Direct labor $62 per unit

Overhead costs this year

Variable overhead $3,000,000

Fixed overhead $7,000,000

Selling and administrative costs this year

Variable $1,400,000

Fixed4,400,000