Required information Exercise 19-3 (Algo) 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 for its first year of operations. The company produced 40,000 units and sold 32,000 units at a price of $120 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Exercise 19-3 (Algo) Part 1b $ 48 per unit $ 18 per unit $6 per unit 400,000 per year $ $ 11 per unit $ 105,000 per year
Required information Exercise 19-3 (Algo) 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 for its first year of operations. The company produced 40,000 units and sold 32,000 units at a price of $120 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Exercise 19-3 (Algo) Part 1b $ 48 per unit $ 18 per unit $6 per unit 400,000 per year $ $ 11 per unit $ 105,000 per year
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
Exercise 19-3 (Algo) 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 for its first year of operations. The company produced 40,000 units and sold 32,000 units
at a price of $120 per unit.
Direct materials
Direct labor
Variable overhead
Fixed overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
Exercise 19-3 (Algo) Part 1b
1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing.
Income Statement (Absorption Costing)
$
0
$ 48 per unit
$ 18 per unit
$6 per unit
$ 400,000 per year.
$ 11 per unit
$ 105,000 per year
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4f7f7e91-311f-40b2-8ef2-058480eb16a0%2Fdce1a08d-487c-4f63-8084-3cbbcb82a62e%2Fl39brox_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
[The following information applies to the questions displayed below.]
Cool Sky reports the following for its first year of operations. The company produced 40,000 units and sold 32,000 units
at a price of $120 per unit.
Direct materials
Direct labor
Variable overhead
Fixed overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
Exercise 19-3 (Algo) Part 1b
1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing.
Income Statement (Absorption Costing)
$
0
$ 48 per unit
$ 18 per unit
$6 per unit
$ 400,000 per year.
$ 11 per unit
$ 105,000 per year
0
Transcribed Image Text:Required information
Exercise 19-3 (Algo) 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 for its first year of operations. The company produced 40,000 units and sold 32,000 units
at a price of $120 per unit.
Direct materials.
Direct labor
Variable overhead
Fixed overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
Income
$ 48 per unit
$ 18 per unit
$6 per unit
$ 400,000 per year.
$ 11 per unit
$ 105,000 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.
Income Statement (Variable Costing)
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