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Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,100 kayaks and sold 850 at a price
Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,100 kayaks and sold 850 at a price of $1,100 each. At this first year-end, the company reported the following income statement information using absorption costing Sales (850 x $1,100) Cost of goods sold (850 x $400) Gross margin Selling and administrative expenses Net income 935,800 340,000 595,000 230,000 $365,000 Additional Information o. Product cost per kayak totals $400, which consists of $300 in variable production cost and $100 in fixed production cost--the latter amount is based on $110,000 of fixed production costs allocated to the 1100 kayaks produced b. The $230,000 in selling and administrative expense consists of $95.000 that is variable and $135,0 fixed. that 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
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