Exercise 19-5 Absorption costing and variable costing income statements LO P2 Rey Company's single product sells at a price of $216 per unit. Data for its single product for its first year of operations $ $ 20 per unit 28 per unit Direct materials Direct labor Overhead costs Variable overhead Fixed overhead per year Selling and administrative expenses Variable Fixed Units produced and sold $ 6 per unit $ 160,000 per year $ 18 per unit $ 200,000 per year 20,000 units 1. Prepare an income statement for the year using absorption costing 2. Prepare an income statement for the year using variable costing. X Answer is not complete. Complete this question by entering your answers in the tabs below. x Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using absorption costing. REY COMPANY Absorption Costing Income Statement Sales $ 4,320,000 Less: Cost of goods sold Variable overhead costs Variable selling and administrative expenses Fixed selling and administrative costs 360,000 200.000 X X 560,000 1,120,000 Net income (loss) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using variable costing. REY COMPANY Variable Costing Income Statement Sales $ 4,320,000 Less Variable costs Variable overhead costs 1,080,000 360.000 Variable selling and administrative expenses Direct materials Fixed overhead costs X X X X 2,880,000 160,000 X 200,000 $ Fixed overhead costs Total fixed costs 4,680,000 Net income 0 Net income (loss)