Exercise 19-7 (Static) Income reporting under absorption costing and variable costing LO P2 Sims Company began operations on January 1. Its cost and sales information for this year follow. $40 per unit $ 60 per unit $30 per unit Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold Sales price 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. Required 1 Required 2 Complete this question by entering your answers in the tabs below. Prepare an income statement for the year using variable costing. Sales Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses Contribution margin Less: Fixed expenses SIMS COMPANY Income Statement (Variable Costing) Fixed overhead Fixed selling and administrative expenses Income (loss) S 7,000,000 4,200,000 2,100,000 Required t $ 7,000,000 per year $ 11 per unit $ 4,250,000 per year 100,000 units 70,000 units $ 350 per unit $ $ 24,500,000 13,300,000 0 5,020,000 Required 2 >

Exercise 19-7 (Static) Income reporting under absorption costing and variable costing LO P2 Sims Company began operations on January 1 its cost and sales information for this year follow. 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. Complete this question by entering your answers in the tabs below. Prepare an income statement for the year using variable costing