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Cool Sky reports the following for its first year of operations. The company produced 40,000 units and sold 32,000 at a price of $120 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 48 per unit $ 18 per unit $6 per unit $ 400,000 per year $10 per unit $ 105,000 per year cise 19-3 (Algo) Part 1b sume the company uses absorption costing. Prepare its income statement for the year under absorption costing.

Cool Sky reports the following for its first year of operations. The company produced 40,000 units and sold 32,000 at a price of $120 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 48 per unit $ 18 per unit $6 per unit $ 400,000 per year $10 per unit $ 105,000 per year cise 19-3 (Algo) Part 1b sume the company uses absorption costing. Prepare its income statement for the year under absorption costing.

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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Cool Sky reports the following for its first year of operations. The company produced 40,000 units and sold 32,000 units at a price of $120 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Income Statement (Absorption Costing) xercise 19-3 (Algo) Part 1b - Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. Contribution margin duld Contribution margin $ 48 per unit $ 18 per unit $6 per unit Gross profit Income Loss Sales Selling and administrative expenses $ 400,000 per year $ 10 per unit $ 105,000 per year
Transcribed Image Text:Cool Sky reports the following for its first year of operations. The company produced 40,000 units and sold 32,000 units at a price of $120 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Income Statement (Absorption Costing) xercise 19-3 (Algo) Part 1b - Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. Contribution margin duld Contribution margin $ 48 per unit $ 18 per unit $6 per unit Gross profit Income Loss Sales Selling and administrative expenses $ 400,000 per year $ 10 per unit $ 105,000 per year
Cool Sky reports the following for its first year of operations. The company produced 40,000 units and sold 32,00 at a price of $120 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Exercise 19-3 (Algo) Part 1a 1a. Assume the company uses absorption costing. Determine its total product cost per unit. Per unit product cost using: Direct materials Direct labor Variable overhead Fixed overhead Total product cost per unit Absorption costing $ $ 48 per unit $ 18 per unit $6 per unit $ 400,000 per year $10 per unit $ 105,000 per year.
Transcribed Image Text:Cool Sky reports the following for its first year of operations. The company produced 40,000 units and sold 32,00 at a price of $120 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Exercise 19-3 (Algo) Part 1a 1a. Assume the company uses absorption costing. Determine its total product cost per unit. Per unit product cost using: Direct materials Direct labor Variable overhead Fixed overhead Total product cost per unit Absorption costing $ $ 48 per unit $ 18 per unit $6 per unit $ 400,000 per year $10 per unit $ 105,000 per year.
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