Exercise $19\mathrm{.}7($Algo$)$ Income reporting under absorption costing and variable costi

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

$\backslash$table$[[$Direct materials,$$40$ per unit$],[$Direct labor,$$60$ per unit$],[$Variable overhead,$$20$ per unit$],[$Fixed overhead,$$8,800,000$ per year$],[$Variable selling and administrative expenses,$$11$ per unit$],[$Fixed selling and administrative expenses,$$4,250,000$ per year$],[$Units produced,,$110,000$ units$],[$Units sold,$80,000$ units$],[$Sales price,$$360$ per unit$]]$

Prepare an income statement for the year using variable costing.

Prepare an income statement for the year using absorption costing.

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Required $1$

Prepare an income statement for the year using variable costing.