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Sims Company began operations on January 1. Its cost and sales information for this year follow. Direct materials $ 35 per unit Direct labor $ 55 per unit Variable overhead $ 40 per unit Fixed overhead $ 6, 000, 000 per year 6.25 points Variable selling and administrative expenses $ 11 per unit Fixed selling and administrative expenses $ 4,500, 000 per year units produced 100, 000 units 8 02:59:51 Units sold 70, 000 units Sales pric $ 350 per unit . Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using variable costing . SIMS COMPANY Income Statement (Variable Costing) Income Required 2 > Required 1 Required 2 Prepare an income statement for the year using absorption costing. SIMS COMPANY Income Statement (Absorption Costing) Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced 1,025 kayaks N nd sold 775 at a price of $1,025 each. At year-end, the company reported the following income statement Information using absorption costing Sales (775 x $1, 025) 794, 375 6.25 Cost of goods sold (775 x $500) 387 ,50 points Gross profit 406, 875 Selling and administrative expenses 240 , 000 8 02:59:14 $ 166, 875 Additional Information a. Product cost per kayak under absorption costing totals $500, which consists of $400 in direct materials, direct labor, and variable overhead costs and $100 in fixed overhead cost. Fixed overhead of $100 per unit is based on $102,500 of fixed overhead per year divided by 1,025 kayaks produced. b. The $240,000 in selling and administrative expenses consists of $105,000 that is variable and $135,000 that is fixed. Prepare an income statement for the current year under variable costing KENZI Income Statement (Variable Costing)