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.

$\backslash$table$[[$Direct materials,$$35$ per unit$],[$Direct labor,$$55$ per unit$],[$Variable overhead,$$20$ per unit$],[$Fixed overhead,$$8,000,000$ per year$],[$Variable selling and administrative expenses,$$11$ per unit$],[$Fixed selling and administrative expenses,$$5,000,000$ per year$],[$Units produced,$100,000$ units$],[$Units sold,$70,000$ units$],[$Sales price,$$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 $1$

Prepare an income statement for the year using variable costing.

SIMS COMPANY

Income Statement $($Variable Costing$)$

Prepare an income statement for the year using absorbtion costing