1. Prepare an income statement for the year using variable costing.1B. Prepare an income statement for the year using absorption costing. Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and salesinformation for this year follows.Manufacturing costsDirect materials40 per unit60 per unitDirect laborOverhead costsVariable20 per unit$8,800,000 (per year)FixedSelling and administrative costs for the yearVariable$ 750,000$4,250,000FixedProduction and sales for the yearUnits producedUnits sold110,000 units80,000 units360 per unitSales price per unit1. Prepare an Income statement for the year using varlable costing.2. Prepare an income statement for the year using absorption costing.Complete this question by entering your answers in the tabs below.Required 1Required 2Prepare an income statement for the year using variable costing.SIMS COMPANYVariable Costing Income Statement

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Description: 1. Prepare an income statement for the year using variable costing.1B. Prepare an income statement for the year using absorption costing. Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and salesinforma

variable costing and Absorption costing are two methods of costing. Under variable costing, all…

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Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales Information for this year follows. Manufacturing costs Direct materials 40 per unit 60 per unit Direct labor Overhead costs Variable Fixed Selling and administrative costs for the year Variable 20 per unit $8,800,000 (per year) $ 750,000 $4,250,000 Fixed Production and sales for the year Units produced Units sold Sales price per unit 110,000 units 80,000 units 360 per unit 1. Prepare an Income statement for the year using varlable costing. 2. Prepare an Income statement for the year using absorption costing.

Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales Information for this year follows. Manufacturing costs Direct materials 40 per unit 60 per unit Direct labor Overhead costs Variable Fixed Selling and administrative costs for the year Variable 20 per unit $8,800,000 (per year) $ 750,000 $4,250,000 Fixed Production and sales for the year Units produced Units sold Sales price per unit 110,000 units 80,000 units 360 per unit 1. Prepare an Income statement for the year using varlable costing. 2. Prepare an Income statement for the year using absorption 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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