Exercise 19-4 Variable costing income statement LO P2 Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,050 kayaks and sold 800 at a price of $1,050 each. At this first year-end, the company reported the following income statement information using absorption costing. $ Sales (800 x $1,050) Cost of goods sold (800 x $400) Gross margin Selling and administrative expenses Net income 840,000 320,000 520,000 210,000 310,000 $ Additional Information a. Product cost per kayak totals $400, which consists of $300 in variable production cost and $100 in fixed production costthe latter amount is based on $105,000 of fixed production costs allocated to the 1,050 kayaks produced. b. The $210,000 in selling and administrative expense consists of $75,000 that is variable and $135,000 that is fixed. Required: 1. Prepare an income statement for the current year under variable costing. 2. Fill in the blanks: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the current year under variable costing. KENZI KAYAKING Variable Costing Income Statement Net income (loss) Fixed costs added to inventory Additional Information a. Product cost per kayak totals $400, which consists of $300 in variable production cost and $100 in fixed production costthe latter amount is based on $105,000 of fixed production costs allocated to the 1,050 kayaks produced. b. The $210,000 in selling and administrative expense consists of $75,000 that is variable and $135,000 that is fixed. Required: 1. Prepare an income statement for the current year under variable costing. 2. Fill in the blanks: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Fill in the blanks: The dollar difference in variable costing income and absorption costing income = units fixed overh