Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and salesInformation for this year follows.Manufacturing costsDirect materials242430 per unit50 per unitDirect laborOverhead costs20 per unit$8,800, 000 (per year)variable24Fixedselling and administrative costs for the yearvariable$ 750,000$4,500,000FixedProduction and sales for the yearUnits produced110,000 units80, 000 units360 per unitUnits soldSales 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

Income Statement under Absorption and Variable Costing Difference between the above two statements…

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 Direct labor Overhead costs 30 per unit 5e per unit Variable Fixed 20 per unit $8,800,000 (per year) Selling and administrative costs for the year Variable $ 750,000 $4,500,000 Fixed Production and sales for the year Units produced Units sold sales price per unit 110,000 units se,e00 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 Direct labor Overhead costs 30 per unit 5e per unit Variable Fixed 20 per unit $8,800,000 (per year) Selling and administrative costs for the year Variable $ 750,000 $4,500,000 Fixed Production and sales for the year Units produced Units sold sales price per unit 110,000 units se,e00 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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Question

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
24
24
30 per unit
50 per unit
Direct labor
Overhead costs
20 per unit
$8,800, 000 (per year)
variable
24
Fixed
selling and administrative costs for the year
variable
$ 750,000
$4,500,000
Fixed
Production and sales for the year
Units produced
110,000 units
80, 000 units
360 per unit
Units sold
Sales price per unit
1. 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 1
Required 2
Prepare an income statement for the year using variable costing.
SIMS COMPANY
Variable Costing Income Statement

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