Exercise 6-4 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. 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) 840,000 Cost of goods sold (800 x $475) 380,000 Gross margin 460,000 Selling and administrative expenses 220,000 Net income 240,000 Additional Information a. Production cost per kayak totals $475, which consists of $376 in variable production cost and $100 in fixed production cost--the latter amount is based on 5,000 of fixed production costs allocated to the 1,050 kayaks produced. and administrative expense consists of $85,000 that is variable and $135,000 b. in selling that is fixed, Required 1. Prepare an income statement for the current year under variable costing