still incomplete

Exercise 6-3 Income reporting under absorption costing and variable costing LO P2 Sims Company, a manufacturer of tablet computers, began operations on January 1, 2017. Its cost and sales information for this year follows nts Manufacturing costs Direct materials Direct labor Overhead costs for the year 30 per unit 50 per unit Variable overhead $3, 150, 000 $7,350,000 Fixed overhead Selling and administrative costs for the year Variable Fixed 750,000 $4,250,000 Production and sales for the year 105,000 units 75,000 units Units produced Units sold Sales price per unit 360 per unit 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. 3. Under what circumstance(s) is reported incom e identical under both absorption costing and variable costing? prev. 1 of 1 Next aw cation Sales 27,000,000 Less: Variable costs Direct materials Direct labor Variable overhead Variable selling and administrative 2,250,000 3,750,000 2,250,000 750,000 expenses 9,000,000 Total variable costs Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative costs 17,100,000 8 7,350,000 4,250,000 Total fixed expenses Net income (loss) 11,600,000 $5,500,000 Required 2 > 1 of 1 to search 2 3 6 WE Pr epare an income statement for the year using absorption costing... SIMS COMPANY Absorption Costing Income Statement Sales 27,000,000 Less: Cost of goods sold Direct materials Direct labor Variable overhead costs $2 250,0000 3,750,000 250,000 2,2 5,250,000 Cost of goods sold Gross margin Selling general and administrative expenses 13,500,000 12,600,000 Fixed selling and administrative costs4,250,000 750,000 Variable selling and administrative expenses Total selling. general and administrative expenses Net incnme flass 5,000,000 $4.500.000 1 of 1 to search Ol 2 3 4. 6 7