Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 42,000 units and sold 34,000 units at a price of $140 per unit. Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead for the year Selling and administrative costs Variable selling and administrative cost per unit Fixed selling and administrative cost per year $ 69. 69 60 22 8 $ $ $ 504,000 $ 11 $ 115,000 . Assume the company uses absorption costing. Prepare its income statement for the year nder absorption costing.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Cool Sky reports the following costing data on its product for its first year of
operations. During this first year, the company produced 42,000 units and
sold 34,000 units at a price of $140 per unit.
Manufacturing costs
Direct materials per unit
Direct labor per unit
Variable overhead per unit
Fixed overhead for the year
Selling and administrative costs
Variable selling and administrative cost per unit
Fixed selling and administrative cost per year
Het income (loss)
COOL SKY
Absorption Costing Income Statement
0
$
69. 69
0
. Assume the company uses absorption costing. Prepare its income statement for the year
nder absorption costing.
60
22
8
$
$
$ 504,000
$
11
$ 115,000
Transcribed Image Text:Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 42,000 units and sold 34,000 units at a price of $140 per unit. Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead for the year Selling and administrative costs Variable selling and administrative cost per unit Fixed selling and administrative cost per year Het income (loss) COOL SKY Absorption Costing Income Statement 0 $ 69. 69 0 . Assume the company uses absorption costing. Prepare its income statement for the year nder absorption costing. 60 22 8 $ $ $ 504,000 $ 11 $ 115,000
2a. Assume the company uses variable costing. Determine its product cost per unit.
Variable
costing
Per unit product cost using:
Cost per unit
2b. Assume the company uses variable costing. Prepare its income statement for the year
under variable costing.
Net income (loss)
COOL SKY
Variable Costing Income Statement
Transcribed Image Text:2a. Assume the company uses variable costing. Determine its product cost per unit. Variable costing Per unit product cost using: Cost per unit 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. Net income (loss) COOL SKY Variable Costing Income Statement
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