Sims Company began operations on January $1.$ Its cost and sales information for this year follow.

Direct materials

Direct labor

Variable overhead

Fixed overhead

Variable selling and administrative expenses

Fixed selling and administrative expenses $4,250,000$ per year Units produced

Units sold

Sales price

$$40$ per unit

$$60$ per unit

$$30$ per unit $

$7,000,000$ per year

$$11$ per unit

$100,000$ units

$70,000$ units

$$350$ 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.

$\backslash$table$[[$Required$,$Required$],[1,2]]$

Prepare an income statement for the year using variable costing.

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