Exercise $19-7($Algo$)$ Income reporting under absorption costing and variable costing LO P$2$

Sims Company began operations on January $1.$ Its cost and sales information for this year follow.

Direct materials

Direct labor

Variable overhead

Fixed overhead

Variable selling and administrative expenses

Fixed selling and administrative expenses

Units produced

Units sold

Sales price

$$40$ per unit

$$60$ per unit

$$20$ per unit

$$8,000,000$ per year

$$11$ per unit

$$4,000,000$ per year

$100,000$ units

$70,000$ units

$$350$ per unit

Prepare an income statement for the year using variable costing.

Prepare an income statement for the year using absorption costing.

Complete this question by entering your answers in the tabs below.

Prepare an income statement for the year using variable costing.

$\backslash$table$[[$SIMS COMPANY$],[$Sales$,$Income Statement $($Variable Costing$),],[$Less: Variable expenses,,$],[$Variable cost of goods sold,,$],[$Fixed selling and administrative expenses,,$],[,,],[,,],[,,],[,,],[,,],[,,],[$income$,,]]$