Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,050 kayaks and sold 800. at a price of $1,050 each. At this first year -end, the company reported the following income absorption costing Sales (800 x $1,050) Cost of goods sold (800 x $475) Gross margin selling and administrative expenses Net income $ 840,000 380,800 460,800 250,000 210,900 Additional Information a. Product cost per kayak totals $475, which consists of $375 in variable production cost and $100 in fixed production cost-the latter amount is based on $105,000 of fixed production costs allocated to the 1,050 kayaks produced b. The $250,000 in selling and administrative expense consists of $95,000 that is variable and S155,000 that is fixed Required 1. Prepare an income statement for the current year under variable costing KENZI KAYAKING 1 of 1 220 PM check my work a. Product cost per kayak totals $475, which consists of $375 in variable production cost and $100 in fixed production cost-the latter amount is based on $105,000 of fixed production costs allocated to the 1,050 kayaks produced. b. The $250,000 in selling and administrative expense consists of $95,000 that is variable and $155,000 that is fixed Required 1. Prepare an income statement for the current year under variable costing KENZI KAYAKING Variable Costing Income Statement Sales S 840,000 ess: Variable costs Variable product costs Variable selling and administrative expenses otal variable costs Contribution margin 4450+ ess: Fixed expenses Fixed selling and administrative costs Fixed overhead costs 155,000 105,000 260 000 Total fixed expenses 1 of 1 521 PM NZI KAYAKING le Costing Income Statement $ 840,000 Less: Variable costs Variable product costs Variable selling and administrative expenses otal variable costs Contribution margin 445,000 ess: Fixed expenses Fixed selling and administrative costs Fixed overhead costs 155,000 105,000 260,000 185,000 Net income (loss) tg] 521 PM 3/31/2019 .114) }"e ^ Kenzi Kayaking, a manufacturer of kayaks, sold 800. at a price of $1,050 eac absorption costing began operations this year. During this first year, the company produced 1,050 kayaks and h. At this first year-end, the company reported the following income statement information using Sales (80 x $1,050) Cost of goods sold (800 x $475) Gross margin Selling and administrative expenses Net income $ 840,0e0 380,00 460,006 25e,000 210,000 Additional Information a. Product cost per kayak totals $475, which consists of $375 in variable production cost and $100 in fixed pr amount is based on $105,000 of fixed production costs allocated to the 1,050 kayaks produced b. The $250,000 in selling and administrative expense consists of $95,000 that is variable and $155,000 that is fixed Required 1. Prepare an income statement for the current year under variable costing KENZI KAYAKING Prev 1 of 1 5:21 PM