3 Kenzi, a manufacturer of kayaks, began operations this year. During this year, the company produced 1,100 kayaks and sold 850 at a price of $1,100 each. At year-end, the company reported the following income statement Information using absorption costing. 25 points Skipped Sales (850 $1,100) Cost of goods sold (850 $500) Gross profit Selling and administrative expenses Income 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 $110,000 of fixed overhead per year divided by 1,100 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 varlable costing. Income KENZI $ 935,000 425,000 510,000 240,000 $ 270,000 Income Statement (Variable Costing)

Adartionat information divided by tyo0 kayass prodoted