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Exercise 1 9 - 7 ( Algo ) Income reporting under absorption costing and variable costing LO P 2 SIms Company began operations on January

Exercise 19-7(Algo) Income reporting under absorption costing and variable costing LO P2
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
$30 per unit
$50 per unit
$20 per unit
$8,400,000 per year
$11 per unit
$4,500,000 per year
105,000 units
75,000 units
$350 per unit
Prepare an Income statement for the year using varlable costing.
Prepare an income statement for the year using absorption costing.
Complete this question by entering your answers in the tabs below.
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Prepare an income statement for the year using variable costing.
\table[[SIMS COMPANY],[Sales,,],[Less: Variable expenses,,],[Variable cost of goods sold,$7,500,000,],[Variable selling and administrative expenses,825,000,],[,,8,325,000
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