Cool Sky reports the following for its first year of operations. The company produced 42,000 units and sold 34,000 units at a price of $150 per unit.   Direc

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Cool Sky reports the following for its first year of operations. The company produced 42,000 units and sold 34,000 units at a price of $150 per unit.

 
Direct materials $ 66 per unit
Direct labor $ 25 per unit
Variable overhead $ 9 per unit
Fixed overhead $ 546,000 per year
Variable selling and administrative expenses $ 10 per unit
Fixed selling and administrative expenses $ 105,000 per year

 

Exercise 19-3 (Algo) Part 2b

2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.

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