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16 0.95 points Skipper: References References Check my work Exercise 19-8 (Algo) Variabie costing income statement L0 P2 Kenzi. a manufacturer of kayaks, began operations this year. During this year, the company produced 1,025 kayaks and sold 775 at a price of $1,025 each. At year-end,the company reported the following income statement information using absorption costing. Sales (775 x $1,025} 5 794,375 Cost of goods sold (775 x $475) 363.125 Gross profit 426,250 Selling and administrative expenses 250.000 Income 3 175. 255 Additional Information a. Product cost per kayak under absorption costing totals $475. which consists of $375 in direct materials, direct labor, and variable overhead costs and $100 in xed overhead cost. Fixed overhead of $100 per unit is based on $102,500 offixed overhead per year divided by 1,025 kayaks produced. b. The $250,000 in selling and administrative expenses consists of$95,000 that is variable and $155,000 that is fixed. Prepare an income statement for the current year under variable costing. Check my work Exercise 19-22A (Algo) Converting variable costing income to absorption costing income LO A2 A manufacturer reports the following information for the past three years. Year 1 Year 2 Year 3 Variable costing income $ 135.500 :5 141,600 $ 140,200 Beginning finished goods inventory (units) 0 2,050 1.550 Ending finished goods inventory (units) 2.050 1,550 1.650 Fixed overhead (FDHJ per unit $ 1.80 $ 1.80 $ 1.30 Compute income for each ofthe three years using absorption costing. Hint: Fixed overhead in inventory equals the FOH per unit x Units in inventory. (Amounts to be deducted should be indicated with a minus sign.) __-_ __-_ _