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Sims Company began operations on January 1. Its cost and sales information for this year follow. $ 30 per unit $50 per unit $20 per unit $ 8,400,000 per year $ 11 per unit Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold Sales price $4,750,000 per year 105,000 units 75,000 units 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. $ 350 per unit

Sims Company began operations on January 1. Its cost and sales information for this year follow. $ 30 per unit $50 per unit $20 per unit $ 8,400,000 per year $ 11 per unit Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold Sales price $4,750,000 per year 105,000 units 75,000 units 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. $ 350 per unit

FINANCIAL ACCOUNTING
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 began operations on January 1. Its cost and sales information for this year follow. $ 30 per unit $50 per unit $20 per unit $ 8,400,000 per year $ 11 per unit $4,750,000 per year 105,000 units 75,000 units Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold Sales price 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. $ 350 per unit
Transcribed Image Text:Sims Company began operations on January 1. Its cost and sales information for this year follow. $ 30 per unit $50 per unit $20 per unit $ 8,400,000 per year $ 11 per unit $4,750,000 per year 105,000 units 75,000 units Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold Sales price 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. $ 350 per unit
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