Exercise 19-3 Income reporting under absorption costing and verlable costing LO P2 Sims Company, a manufacturer of toblet compusers, began operations on January 1, 2017. Its cost and salees information for this year folows. Manufacturing costs Direct materials 35 per unit 55 per unit Direct labor Overhead costs for the year Variable overhead Fixed overhead Selling and administrative costs for the year Variable $3,150,e00 $7,350,eee S 775,eee $4,500,eee Fixed Production and sales for the year Units produced 1es,eee units 75,0e0 units 36e per unit. Units sold Sales price per unit 1 Prepare an income statement for the year using variable costing. 2 Prepare an income statement for the year using absorption costing 3. Under what circumstoncels) is reponed income identical under both absorption costing and variable costing? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare an income statement for the year using variable costing. SIMS COMPANY vartable Costng income statement Net income Doss) Prepare an income statement for the year using absorption costing SIMS COMPANY Absorption Costing income statament Net income Goss) Under what circumstance(s) is reported income identical under both absorption costing and variable costing? Reported income identical under both