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Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,075 kayaks and sold 825 at a price

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Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,075 kayaks and sold 825 at a price of $1,075 each. At this first year-end, the company reported the following income statement information using absorption costing. $ 886 875 Sales (825 x $1,075) Cost of goods sold (825 $450) Gross margin Selling and administrative expenses Net income 371 250 515.625 230 000 285 625 $ Additional Information a. Product cost per kayak totals $450, which consists of $350 in variable production cost and $100 in fixed production cost-the latter amount is based on $107.500 of fixed production costs allocated to the 1,075 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: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 1 Required Prepare an income statement for the current year under variable costing KENZI KAYAKING Variable Costing Income Statement Net income (loss) Fored costs added to inventory 25 at a price of $1075 each. At this first year-end, the company reported Kenal Kayaking a manufacturer of kayaks, began operations this year. During this first year, the company woduced 1.075 kayaks and the following income statement information using absorption costing Sales (82551075) Cost of goods sold (825550 Gross margin Sering and administrative expenses Net income Additional Information a. Product cost per kayak totals $450, which consists of 5350 in variable production cost and 5100 in fed production cost-the latter amount is based on $107.500 of food production costs located to the 1,075 kayaks produced b. The 200 000 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 couting 2. F in the blanks Complete this question by entering your answers in the tabs below. Required 1 Required Fill in the blanks: tredoverta per unit co The dotar difference in variable costing income and absorption costi Rurored 1

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