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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