Exercise $19-7($Algo$)$ Income reporting under absorption costing and variable costing LO P$2$

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

Direct materials

Direct labor $ $35$ per unit

Variable overhead

Fixed overhead

$$55$ per unit

Variable selling

$$30$ per unit

Variable selling and administrative expenses

Fixed selling and administrative expenses

Units produced

Units sold

Sales price

$$7,350,000$ per year

$$11$ per unit

$$4,250,000$ per year

$105,000$ units

$75,000$ units

$$350$ per unit

Prepare an income statement for the year using variable costing,

Prepare an income statement for the year using absorption costing.

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Prepare an income statement for the year using absorption costing.

SIMS COMPANY

Income Statement $($Absorption Costing$)$

$\backslash$table$[[,],[,],[,],[,],[,$$Exercise $19-7($Algo$)$ Income reporting under absorption costing and variable costing LO P$2$

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

Direct materials

Direct labor

Variable overhead

Fixed overhead

Variable selling and administrative expenses

Fixed selling and administrative expenses

Units produced

$$35$ per unit

$$55$ per unit

$$30$ per unit

$$7,350,000$ per year

Units sold

$$11$ per unit

$$4,250,000$ per year

Sales price

$105,000$ units

$75,000$ units

$$350$ per unit

Prepare an income statement for the year using variable costing.

Prepare an income statement for the year using absorption costing.

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Prepare an income statement for the year using variable costing.

$\backslash$table$[[$SIMS COMPANY,$],[$Sales$,,],[$Less: Variable expenses,,$],[$Variable cost of goods sold,,$],[$Variable selling and administrative expenses,,$],[,,],[$Contribution margin,,$],[$Less: Fixed expenses,,$],[$Fixed overhead,,$],[$Fixed selling and administrative expenses,$7,350,000,],[,4,250,000,],[$Income$,,11,600,000$