Required information Exercise 19 - 3 (Algo) Income statement under absorption costing and variable costing LO P1, P2 Skip to question [The following information applies to the questions displayed below.] Cool Sky reports the following for its first year of operations. The company produced 44,000 units and sold 36,000 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 $ 484,000 per year Variable selling and administrative expenses $10 per unit Fixed selling and administrative expenses $110,000 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.
Required information Exercise 19 - 3 (Algo) Income statement under absorption costing and variable costing LO P1, P2 Skip to question [The following information applies to the questions displayed below.] Cool Sky reports the following for its first year of operations. The company produced 44,000 units and sold 36,000 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 $ 484,000 per year Variable selling and administrative expenses $10 per unit Fixed selling and administrative expenses $110,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required information Exercise 19 - 3 (Algo) Income statement under absorption costing and variable costing LO P1, P2
Skip to question [The following information applies to the questions displayed below.] Cool Sky reports the following for
its first year of operations. The company produced 44,000 units and sold 36,000 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 $ 484,000 per year
Variable selling and administrative expenses $10 per unit Fixed selling and administrative expenses $110,000 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6449199e-ec5d-4830-87ee-475f60834095%2Fa641f357-d028-4903-bac2-f1adc5eab9cb%2Fjynrena_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information Exercise 19 - 3 (Algo) Income statement under absorption costing and variable costing LO P1, P2
Skip to question [The following information applies to the questions displayed below.] Cool Sky reports the following for
its first year of operations. The company produced 44,000 units and sold 36,000 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 $ 484,000 per year
Variable selling and administrative expenses $10 per unit Fixed selling and administrative expenses $110,000 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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