Sims Company, a manufacturer of tablet computers, began operations on January 1, 2017. Its cost and salesinformation for this year follows.Manufacturing costsDirect materialsDirect laborOverhead costs for the yearVariable overheadFixed overheadSelling and administrative costs for the yearVariableFixedProduction and sales for the yearUnits producedUnits soldSales price per unit$Required 1$2,200,000$8,800,000Net income (loss)35 per unit55 per unit$ 775,000$4,500,000$1. Prepare an income statement for the year using variable costing.2. Prepare an income statement for the year using absorption costing.3. Under what circumstance(s) is reported income identical under both absorption costing and variable costing?Required 2 Required 3Prepare an income statement for the year using variable costing.SIMS COMPANYVariable Costing Income StatementComplete this question by entering your answers in the tabs below.110,000 units80,000 units360 per unit

Absorption costing method:— Under this method, product cost is calculated by adding direct material,…

Sims Company, a manufacturer of tablet computers, began operations on January 1, 2017. Its cost and sales information for this year follows. Manufacturing costs Direct materials Direct labor Overhead costs for the year Variable overhead Fixed overhead Selling and administrative costs for the year Variable Fixed Production and sales for the year Units produced Units sold Sales price per unit $ $2,200,000 $8,800,000 35 per unit 55 per unit $ 775,000 $4,500,000 $ 110,000 units 80,000 units 360 per unit 1. Prepare an income statement for the year using variable costing.

Sims Company, a manufacturer of tablet computers, began operations on January 1, 2017. Its cost and sales information for this year follows. Manufacturing costs Direct materials Direct labor Overhead costs for the year Variable overhead Fixed overhead Selling and administrative costs for the year Variable Fixed Production and sales for the year Units produced Units sold Sales price per unit $ $2,200,000 $8,800,000 35 per unit 55 per unit $ 775,000 $4,500,000 $ 110,000 units 80,000 units 360 per unit 1. Prepare an income statement for the year using variable costing.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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