Cool Sky reports the following for its first year of operations. The company produced 46,000 units and sold 38,000 units at a price of $140 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 60 per unit $ 22 per unit $ 8 per unit $ 552,000 per year $ 12 per unit $ 100,000 per year Exercise 6-3 (Algo) Part 2a 2a. Assume the company uses variable costing. Determine its total product cost per unit. Per unit product cost using: Total product cost per unit Variable costing [The following information applies to the questions displayed below.] Cool Sky reports the following for its first year of operations. The company produced 46,000 units and sold 38,000 units at a price of $140 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 60 per unit $ 22 per unit $ 8 per unit $ 552,000 per year $12 per unit $ 100,000 per year Exercise 6-3 (Algo) Part 2b 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. Income Statement (Variable Costing) Income
Cool Sky reports the following for its first year of operations. The company produced 46,000 units and sold 38,000 units at a price of $140 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 60 per unit $ 22 per unit $ 8 per unit $ 552,000 per year $ 12 per unit $ 100,000 per year Exercise 6-3 (Algo) Part 2a 2a. Assume the company uses variable costing. Determine its total product cost per unit. Per unit product cost using: Total product cost per unit Variable costing [The following information applies to the questions displayed below.] Cool Sky reports the following for its first year of operations. The company produced 46,000 units and sold 38,000 units at a price of $140 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 60 per unit $ 22 per unit $ 8 per unit $ 552,000 per year $12 per unit $ 100,000 per year Exercise 6-3 (Algo) Part 2b 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. Income Statement (Variable Costing) Income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cool Sky reports the following for its first year of operations. The company produced 46,000 units and sold 38,000 units
at a price of $140 per unit.
Direct materials
Direct labor
Variable overhead
Fixed overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
$ 60 per unit
$ 22 per unit
$ 8 per unit
$ 552,000 per year
$ 12 per unit
$ 100,000 per year
Exercise 6-3 (Algo) Part 2a
2a. Assume the company uses variable costing. Determine its total product cost per unit.
Per unit product cost using:
Total product cost per unit
Variable
costing
![[The following information applies to the questions displayed below.]
Cool Sky reports the following for its first year of operations. The company produced 46,000 units and sold 38,000 units
at a price of $140 per unit.
Direct materials
Direct labor
Variable overhead
Fixed overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
$ 60 per unit
$ 22 per unit
$ 8 per unit
$ 552,000 per year
$12 per unit
$ 100,000 per year
Exercise 6-3 (Algo) Part 2b
2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.
Income Statement (Variable Costing)
Income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e8d4de1-1986-435d-9868-a5cba9cd1825%2F5003f36b-9618-4d18-8e1d-0f14e9b1db23%2F5esek3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
Cool Sky reports the following for its first year of operations. The company produced 46,000 units and sold 38,000 units
at a price of $140 per unit.
Direct materials
Direct labor
Variable overhead
Fixed overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
$ 60 per unit
$ 22 per unit
$ 8 per unit
$ 552,000 per year
$12 per unit
$ 100,000 per year
Exercise 6-3 (Algo) Part 2b
2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.
Income Statement (Variable Costing)
Income
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