Assignment
Sims Company, a manufacturer of tablet computers, began operations on January 1, 2015. Its cost and sales information for this year follows. Manufacturing costs 30 per unit Direct materials Direct labo 50 per unit Overhead costs for the year $2,000,000 Variable overhead Fixed overhead $8,000,000 Selling and administrative costs for the year Variable 700,000 Fixed $4,250,000 Production and sales for the year 100,000 units Units produced 70,000 units Units sold Sales price per unit 350 per unit
1. Prepare an income statement for the year using variable costing
2. Prepare an income statement or The year using absorption costng.
3. Under what circumstance(s) is reported income identical under both absorpton costng and variable costing?