**Required Information***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 $130 per unit.- Direct materials: $54 per unit- Direct labor: $20 per unit- Variable overhead: $6 per unit- Fixed overhead: $506,000 per year- Variable selling and administrative expenses: $10 per unit- Fixed selling and administrative expenses: $105,000 per year**2b.** Assume the company uses variable costing. Prepare its income statement for the year under variable costing.| Income Statement (Variable Costing) | ||-----------------------------------------------|---------------|| Sales | $494,000 || Less: Fixed expenses | || \[Details not provided in the image\] | || Income | |**Note:** The table for the income statement is partially completed, showing only the total sales amount. The breakdown of fixed expenses and the resulting income calculation is not provided. The total sales are calculated based on selling 38,000 units at $130 each.

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Description: **Required Information***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 $130 per unit.- Direc

SOLUTION:- 2b) Income Statement (Variable Costing) Sales…

Business

Accounting

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 $130 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 54 per unit $ 20 per unit $6 per unit $ 506,000 per year $10 per unit $ 105,000 per year

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 $130 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 54 per unit $ 20 per unit $6 per unit $ 506,000 per year $10 per unit $ 105,000 per year

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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