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

Direct materials	$ 30	per unit
Direct labor	$ 50	per unit
Variable overhead	$ 30	per unit
Fixed overhead	$ 7,350,000	per year
Variable selling and administrative expenses	$ 11	per unit
Fixed selling and administrative expenses	$ 4,750,000	per year
Units produced	105,000	units
Units sold	75,000	units
Sales price	$ 350	per unit

1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing.

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 $ 30 per unit $ 50 per unit $ 30 per unit $ 7,350,000 per year $ 11 per unit $ 4,750,000 per year 105,000 units 75,000 units $ 350 per unit 1. Prepare an income statement for the year using variable costing. 2. 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. SIMS COMPANY Income Statement (Variable Costing) Sales Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses 0 Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses 0 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 $ 30 per unit $ 50 per unit $ 30 per unit $ 7,350,000 per year $ 11 per unit $ 4,750,000 per year 105,000 units 75,000 units $ 350 per unit 1. Prepare an income statement for the year using variable costing. 2. 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 absorption costing. SIMS COMPANY Income Statement (Absorption Costing) Sales Cost of goods sold Gross profit Selling and administrative expenses Income $ 0 0