Exercise 19-3 Income reporting under absorption costing and variable costing LO P2 Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows 40 per unit 60 per unit Manufacturing costs Direct materials Direct labor Overhead costs Variable Fixed Selling and administrative costs for the year Variable Fixed Production and sales for the year Units produced Units sold Sales price per unit $ 20 per unit $8,400,000 (per year $275,000 $4,500,000 1e5,000 units 75,000 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. Prepare an income statement for the year using variable costing. SIMS COMPANY Variable Cosung Income Statement Net income (loss) WYMI Prepare an income statement for the year using absorption costing. SIMS COMPANY Absorption Costing Income Statement Net income (loss)