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

Units produced

Units sold

Sales price

$$40$ per unit

$$60$ per unit

$$30$ per unit

$$7,350,000$ per year

$$11$ per unit

$$4,750,600$ per year

$105,000$ units

$75,600$ units

$$360$ per unit

Prepare an income statement for the year using variable costing.

Prepare an income statement for the year using absorption costing.