Sims Company began operations on January 1. Its cost and sales information for this year follow. $ 35 per unit $ 55 per unit $20 per unit $ 8,000,000 per year $ 11 per unit Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold Sales price 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. Required 1 Required 2 Sales Less: Variable expenses Prepare an income statement for the year using variable costing. $4,250,000 per year 100,000 units Direct materials Direct labor Variable selling and administrative expenses Contribution margin Less: Fixed expenses Income SIMS COMPANY Income Statement (Variable Costing) Fixed overhead Fixed selling and administrative expenses 70,000 units $360 per unit $ 35 55 $ 25,200,000 101

Sims Company began operations on January 1. Its cost and sales information for this year follow. 1. Prepare an income statement for the year using variable costing 2. Prepare an income statement for the year using absorption costing. Pronare an income statement for the year using variable costing