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 1025 Kayaks and sold 775 at a price of $1,025 each. At this first year-end, the company reported the following income statement information using absorption costing $ Sales (775 * $1,025) Cost of goods sold (775 X $500) Gross margin Selling and administrative expenses Net Income 294,375 38,500 486,875 230,000 176.875 $ Additional Information a. Product cost per kayak totals $500, which consists of $400 in variable production cost and $100 in fixed production cost-the latter amount is based on $102.500 of fixed production costs allocated to the 1.025 kayaks produced b. The $230.000 in selling and administrative expense consists of $95.000 that is variable and $135,000 that is fixed. Required: 1. Prepare an income statement for the current year under variable costing Prey of Next DENNATANG Variable Costing Income Statement Net income (loss) Fixed costs added to inventory Prey 1 of 1 Next per kayak totals $500, which consists of $400 in variable production cost and $100 in fixed production cost-the latter amount is based on S102,500 of fixed production costs allocated to the 1,025 kayaks produced b. The $230,000 in selling and administrative expense consists of 595,000 that is variable and $135,000 that is fixed. Che 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 overhead per unit