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 $1025 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 $500) Gross margin Selling and administrative expenses Net income 794,375 387,500 406,875 230,000 176,875 $ 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. 2. Fill in the blanks: Required 1 Required 2 Prepare an income statement for the current year under variable costing. $ KENZI KAYAKING Variable Costing Income Statement Sales Less: Variable costs Variable selling and administrative expenses $ Variable product costs 794 375 95,000 310,000 405,000 Contribution margin Net Income (loss) Fixed costs added to inventory 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 1025 kayaks produced. b. The $230,000 in seling 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. 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 faxed overhead per unit Search O BE 41F