Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows. $ 35 per unit 55 per unit Manufacturing costs Direct materials Direct labor Overhead conts 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 $ 30 per unit $7,350,000 (per year) $ 775,000 $4,250,000 105,000 units 75,000 units 5 360 per unit 1. Prepare an income statement for the year using variable costing 2. Prepare an income statement for the year using absorption costing, Answer is not complete. 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. SIMS COMPANY Variable Costing Income Statement Sales 27,000,000 Less: Cost of goods sold 3 Direct materials $ 3,675,000 Direct labor 5,775,000 $ Variable overhead costs 3,150,000 Fixed overhead costs 7,350,000 (5,700,000) Cost of goods sold 14,250,000 Gross margin 12,750,000 O Fixed selling and administrative costs Variable selling and administrative expenses 4.250.000 775,000 Total fixed expenses Not income (loss) 5,025,000 $ 7.725,000 $ Required 1 Required 2 Prepare an income statement for the year using absorption costing. $ 27,000,000 SIMS COMPANY Absorption Costing Income Statement Sales Less: Cost of goods sold Direct materials $ 12,600,000 Direct labor 3,600,000 Variable overhead costs Fixed overhead costs 16,200,000 17,225,000 Cost of goods sold Gross margin Selling general and administrative expenses Variable selling and administrative expenses Fixed selling and administrative costs 7,350,000 4,250,000 Total selling, general and administrative expenses Net income (loss) 11,600,000 $ 5,625,000 $