Exercise 06-3 Income reporting under absorption costing and variable costing LO P2 Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales Information for this year follows. Manufacturing costs BREEaterials Director over OSS VO 38 per unit 50 per unit 38 per unit $7,788, eae (per year) Hing and dinistrative costs for the year $758,888 $4.255.202 Toetien 2nd sales to the year 118.303 units od e Prize per il LUBI 1. Prepare an income statement for the rear Using 51358 5085 2. Prepare an income statement for the year using absorption dosing. Complete this question by entering your answers in the tabs below. Red Prepare an income statement for the vear using variable costing SIMS COMPANY Variable Costing Income Statement Required 1 Required 2 Prepare an income statement for the year using variable costing. fone te t- SIMS COMPANY Variable Costing Income Statement Sales Less: Variable costs Direct materials Direct labore Variatie overhead costs Variable selling and administrative expenses Total variable costs Contribution margin Less: Fixed expenses Fixed overhead costs (Fixed selling and administrative costs Net income (lossi Required 2 > greaswers in the tabs belo Required 1 Required 2 Prepare an income statemt for the year using absorption costing. SIMS COMPANY Absorption Costing Income Statement Sales Less: Cost of goods sold Direct materials Direct labor Variable overhead costs Fixed overhead eests | Print Cost of goods solde Gross margin Seling general and administrative expenses Fixed selling and administrative costs Variatie seling and administrative expenses Net income (loss