Ch 06 Ex 6-4 Exercise 06-4 Variable costing income statement LO P2 points 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. $ eBook Sales (775 x $1,025) Cost of goods sold (775 x $425) Gross margin Selling and administrative expenses Net income 794,375 329,375 465,000 230,000 235,000 Hint Additional Information Ask a. Product cost per kayak totals $425, which consists of $325 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. b. The $230,000 in selling and administrative expense consists of $85,000 that is variable and $145,000 that is fixed. Print References Required: 1. Prepare an income statement for the current year under variable costing. 2. Fill in the blanks: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the current year under variable costing. KENZI KAYAKING Variable Costing Income Statement Net income (loss) Required 1 Required 2 > 2. Fill in the blanks: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Fill in the blanks: The dollar difference in variable costing income and absorption costing income = units * fixed overhead per unit. Required 1 Required 2 >