A B C D E 1 2 Sims Company began operations on January 1. Its cost and sales information for this year follow. 3 4 Direct materials $40 per unit 5 Direct labor $60 per unit 6 Variable overhead $30 per unit 7 Fixed overhead $7,000,000 per year 89 8 Variable selling and administrative expenses $11 per unit 9 Fixed selling and administrative expenses $4,250,000 per year 10 Units produced 100,000 units 11 Units sold 70,000 units 12 Sales price $350 per unit 13 14 Required: FL G H 15 1. Prepare an income statement for the year using variable costing. 16 17 (Use cells A4 to C12 from the given information to complete this question. Negative amounts or amounts to be deducted 18 should be input and displayed as negative values. All other answers should be input and displayed as positive values.) 19 20 21 SIMS COMPANY Income Statement (Variable Costing) 22 Sales $24,500,000 23 Less: Variable expenses 24 Variable cost of goods sold $9,100,000 25 Variable selling and administrative expenses 770,000 9,870,000 26 Contribution margin 14,630,000 27 Less: Fixed expenses Screenshot 28 Fixed overhead 7,000,000 A B D E F 17 TUSE TENIS A4 10 C1Z MUm me given momatioN LO COMPIEte iis question. Negative amounts On Amounts to pe qeuucleu 18 should be input and displayed as negative values. All other answers should be input and displayed as positive values.) 19 20 21 SIMS COMPANY Income Statement (Variable Costing) 22 Sales $24,500,000 23 Less: Variable expenses 24 Variable cost of goods sold 25 Variable selling and administrative expenses 26 Contribution margin 27 Less: Fixed expenses 28 Fixed overhead 29 Fixed selling and administrative expenses 0 0 0 0 0 0 $9,100,000 770,000 9,870,000 14,630,000 7,000,000 4,250,000 11,250,000 $3,380,000 30 Income (loss) 31 32 2. Prepare an income statement for the year using absorption costing. 33 34 (Use cells A4 to C12 from the given information to complete this question. Negative amounts or amounts to be deducted 35 should be input and displayed as negative values. All other answers should be input and displayed as positive values.) 36 37 SIMS COMPANY 38 Income Statement (Absorption Costing) 39 Sales $24,500,000 40 Cost of goods sold 16,100,000 41 Gross profit $8,400,000 42 Selling and administrative expenses 5,020,000 43 Income $3,380,000 Screenshot 44 15 G H