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Sims Company began operations on January 1. Its cost and sales information for this year follow. Direct materials $ 30 per unit Direct labor $
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
$ 40
per unit
Fixed overhead
$ 6,300,000
per year
Variable selling and administrative expenses
$ 11
per unit
Fixed selling and administrative expenses
$ 4,250,000
per year
Units produced
105,000
units
Units sold
75,000
units
Sales price
$ 360
per unit
2. Prepare an income statement for the year using absorption costing.
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