Exercise 19-7 (Algo) Income reporting under absorption costing and variable costing LO P2 Sims Company began operations on January 1. Its cost and sales information for this year follow. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold Sales price $ 30 per unit $ 50 per unit $ 20 per unit $ 8,800,000 per year $ 11 per unit $ 5,000,000 per year 110,000 units 80,000 units $ 360 per unit 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 ook Mint rences 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. SIMS COMPANY Income Statement (Variable Costing) Income Required Required 2 > 2 oints Complete this question by entering your answers in the tabs below. Required 1 Required 2 eBook Hint Print References Prepare an income statement for the year using absorption costing. SIMS COMPANY Income Statement (Absorption Costing) < Required 1 Required 2