Cool Sky reports the following for its first year of operations. The company produced 42,000 units and sold 34,000 units 2a. Assume the company uses variable costing. Determine its total product cost per unit. at a price of $140 per unit. $ 60 per unit Fixed overhead $ 22 per unit $8 per unit $504,000 per year $10 per unit $ 105,000 per year Variable selling and administrative expenses Fixed selling and administrative expenses 1a. Assume the company uses absorption costing. Determine its total product cost per unit. Direct materials Direct labor. Variable overhead Per unit product cost using: Absorption costing Total product cost per unit 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. Income Statement (Absorption Costing) $ 0 0 Per unit product cost using: Variable costing Total product cost per unit 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. Income Income Statement (Variable Costing)
Cool Sky reports the following for its first year of operations. The company produced 42,000 units and sold 34,000 units 2a. Assume the company uses variable costing. Determine its total product cost per unit. at a price of $140 per unit. $ 60 per unit Fixed overhead $ 22 per unit $8 per unit $504,000 per year $10 per unit $ 105,000 per year Variable selling and administrative expenses Fixed selling and administrative expenses 1a. Assume the company uses absorption costing. Determine its total product cost per unit. Direct materials Direct labor. Variable overhead Per unit product cost using: Absorption costing Total product cost per unit 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. Income Statement (Absorption Costing) $ 0 0 Per unit product cost using: Variable costing Total product cost per unit 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. Income Income Statement (Variable Costing)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 3CE: Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month...
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Transcribed Image Text:Cool Sky reports the following for its first year of operations. The company produced 42,000 units and sold 34,000 units 2a. Assume the company uses variable costing. Determine its total product cost per unit.
at a price of $140 per unit.
$ 60 per unit
$ 22 per unit
$8 per unit
$ 504,000 per year.
$10 per unit
Variable selling and administrative expenses
Fixed selling and administrative expenses
$ 105,000 per year.
1a. Assume the company uses absorption costing. Determine its total product cost per unit.
Direct materials.
Direct labor
Variable overhead
Fixed overhead
Per unit product cost using:
Absorption costing
Total product cost per unit
1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing.
Income Statement (Absorption Costing)
$
0
0
Per unit product cost using:
Variable
costing
Total product cost per unit
2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.
Income
Income Statement (Variable Costing)
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Step 1: Introduce to income statement
VIEWStep 2: Working for Sales Revenue & variable selling and administrative expenses
VIEWStep 3: Working for Cost of goods sold & selling & Administrative Expense under Absorption Costing
VIEWStep 4: Working for Preperation of Unit Product Cost & Absorption Costing Income Statement
VIEWStep 5: Working for variable cost of goods sold
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