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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

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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 5425) Gross margin Selling and administrative expenses tiet Income $ 294,375 329,375 465,000 240,000 S225,000 Additional Information o. Product cost per kayak totals $425, which consists of $325 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 $240,000 in selling and administrative expense consists of $105,000 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 Prepare an income statement for the current year under variable costing KENZI KAYAKING Variable Casting income Statement Me Kerz Kayaking, a manufacturer of kayaks, began operations this year. During this first year the company produced 1.025 kayaks and sold 775 at a price of $1,025 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 5425) Gross margin Selling and administrative expenses Net incore 5794,375 329,375 465,000 240,000 $225,000 Additional Information a. Product cost per kayak totals $425, which consists of $325 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 $240.000 in selling and administrative expense consists of $105.000 that is variable and $135.000 that is fixed Required: 1. Prepare an income statement for the curtent year under variable costing. 2. Fill in the blanks Complete this question by entering your answers in the tabs below. Required Required 2 Ful in the banks The arrence in varisble costing income and absorption cosing income ced overhead perunt

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