Sims Company, a manufacturer of tablet computers, began operations on January $1,2019.$ Its cost and sales information for this year follows.

$($oprions for left shoulder for the tables is

Exercise $19-3$ Income reporting under absorption costing and variable costing LO P$2$

Sims Company, a manufacturer of tablet computers, began operations on January $1,2019.$ Its cost and sales information for this year

follows.

Manufacturing costs

Direct materials

Direct labor

Overhead costs

Variable

Fixed

Selling and administrative costs for the year

Variable

Fixed

Production and sales for the year

Units produced

Units sold

Sales price per unit

$$,40$ per unit

$$,60$ per unit

$$,20$ per unit

$$8,800,000(per$

year$)$

$$725,000$

$$4,500,000$

$110,000$ units

$80,000$ units

$$,360$ per unit

Prepare an income statement for the year using variable costing.

Prepare an income statement for the year using absorption costing.

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Prepare an income statement for the year using variable costing.Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Prepare an income statement for the year using absorption costing.

SIMS COMPANY

Absorption Costing Income Statement

$\backslash$table$[[,,],[,,],[,,],[,,],[,,],[,,],[,,],[$Net income $($loss$),,]]$ Direct labor

Direct materials

Fixed overhead costs

Fixed selling and administrative costs

Sales

Variable overhead costs

Variable selling and administrative expenses$)$