- Sims Company Began Operations On January 1 Its Cost And Sales Information For This Year Follow Direct Materials Direct 1 (65.99 KiB) Viewed 50 times
- Sims Company Began Operations On January 1 Its Cost And Sales Information For This Year Follow Direct Materials Direct 2 (41.78 KiB) Viewed 50 times
Sims
Company began operations on January 1. Its cost and sales information for this year follow. Direct materials Direct labor $ 40 per unit $ 60 per unit $ 20 per unit Variable overhead Fixed overhead $ 8,800,000 per year $ 11 per unit Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold $ 4,500,000 per year 110,000 units 80,000 units $360 per unit Sales price 1. Prepare an income
statement for the year using variable costing. 2. Prepare an income
statement for the year using absorption costing. Answer is not complete. Complete this
question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income
statement for the year using absorption costing. SIMS
COMPANY Income
Statement (Absorption Costing) Sales $28,800,000 Cost of goods sold Gross profit 28,800,000 Selling and administrative expenses Income $28,800,000 333
Required 1 Required 2 Prepare an income
statement for the year using variable costing. SIMS
COMPANY Income
Statement (Variable Costing) Sales Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses Income 33333 9,600,000 880,000 8,800,000 4,500,000 28,800,000 10,480,000 18,320,000 13,300,000 $ 5,020,000