Sims Company, a manufacturer of tablet computers, bogan opcrations on January 1, 2019. Its cost and sales information for this yoar follows. Manufacturing costs Direct materials 48 per unit 60 per unit Direct labor Overhead costs 40 per unit $6,680, 000 (per year) Variable Fixed Selling and administrative costs for the year Variable $ 725,000 $4,000,000 Fixed Production and sales for the year Units produced Units sold Sales price per unit 110, 000 units 80,000 units 24 350 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, bogan opcrations on January 1, 2019. Its cost and sales information for this yoar follows. Manufacturing costs Direct materials 48 per unit 60 per unit Direct labor Overhead costs 40 per unit $6,680, 000 (per year) Variable Fixed Selling and administrative costs for the year Variable $ 725,000 $4,000,000 Fixed Production and sales for the year Units produced Units sold Sales price per unit 110, 000 units 80,000 units 24 350 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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Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows. Manufacturing costs $ 30 per unit Direct materials Direct labor $ 50 per unit Overhead costs Variable $ Fixed 40 per unit. $6,600,000 (per year) Selling and administrative costs for the year Variable Fixed $ 775,000 $5,000,000 Production and sales for the year Units produced 110,000 units Units sold Sales price per unit 80,000 units 360 per unit $ 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. Required 1 Required 2 O 21
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Complete this question by entering your answers in the tabs below. 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 $ 35 per unit Direct labor $ 55 per unit Overhead costs Variable $ 30 per unit Fixed $ 7,350,000 (per year) Selling and administrative costs for the year Variable $ 775,000 Fixed $ 4,500,000 Production and sales for the year Units produced 105,000 units Units sold 75,000 units Sales price per unit $ 360 per unit Required 1 Required 2 Prepare an income statement for the year using variable costing. SIMS COMPANY Variable Costing Income Statement Net income (loss)