ch 19 exercise

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

please help with both income statements! thank you!

0 Manufacturing costs Direct materials Direct labor Overhead costs Variable 35 per unit 55 per unit 0 20 per unit $8.909 ago (per year) Fixed $4,000,000 Selling and administrative costs for the year Variable Fixed Production and sales for the year Units produced Units sold Sales price per unit 100,000 units 70,000 units 350 per unit $ 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. Required 1 Required 2 Prepare an income statement for the year using variable costing. SIMS COMPANY Variable Costing Income Statement Sales $ 25,200,000 Less: Variable costs Direct materials Direct labor Variable overhead costs Variable selling and administrative expenses Total variable costs Contribution margin Less: Fixed expenses Fixed overhead costs Fixed selling and administrative costs Net income (loss) - Required 1 Required 2 > Required 1 Required 2 Prepare an income statement for the year using absorption costing. SIMS COMPANY Absorption Costing Income Statement Sales Less: Cost of goods sold Direct materials Direct labor Variable overhead costs Fixed overhead costs 8,000,000 8,000,000 Cost of goods sold Gross margin Selling general and administrative expenses Fixed selling and administrative costs Variable selling and administrative expenses Net income (loss)