Exercise 19-9 Income statement under absorption costing and variable costing LO P1, P2 [The following information applies to the questions displayed below.] Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 40,000 units and sold 32,000 units at a price of $140 per unit. Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead for the year Selling and administrative costs $ 60 $ 22 $ 8 $480,000
Exercise 19-9 Income statement under absorption costing and variable costing LO P1, P2 [The following information applies to the questions displayed below.] Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 40,000 units and sold 32,000 units at a price of $140 per unit. Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead for the year Selling and administrative costs $ 60 $ 22 $ 8 $480,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
Exercise 19-9 Income statement under absorption costing and variable costing LO P1, P2
[The following information applies to the questions displayed below.]
Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company
produced 40,000 units and sold 32,000 units at a price of $140 per unit.
Manufacturing costs
Direct materials per unit
Direct labor per unit
Variable overhead per unit
Fixed overhead for the year
Selling and administrative costs
Variable selling and administrative cost per unit
Fixed selling and administrative cost per year
$
60
$
22
$
8
$480,000
$
11
$115,000
Exercise 19-9 Part 1a
1a. Assume the company uses absorption costing. Determine its product cost per unit.
Per unit product cost using:
Absorption costing
Total cost per unit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6ab7e98f-9507-47c4-8d76-e6113ace4fcc%2Fa50cb2a1-fc59-4e25-bb78-6928d85022e5%2F26c3xle_processed.jpeg&w=3840&q=75)
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Required information
Exercise 19-9 Income statement under absorption costing and variable costing LO P1, P2
[The following information applies to the questions displayed below.]
Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company
produced 40,000 units and sold 32,000 units at a price of $140 per unit.
Manufacturing costs
Direct materials per unit
Direct labor per unit
Variable overhead per unit
Fixed overhead for the year
Selling and administrative costs
Variable selling and administrative cost per unit
Fixed selling and administrative cost per year
$
60
$
22
$
8
$480,000
$
11
$115,000
Exercise 19-9 Part 1a
1a. Assume the company uses absorption costing. Determine its product cost per unit.
Per unit product cost using:
Absorption costing
Total cost per unit
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