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Required information Exercise 6-3 (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 44,000 units and sold 36,0 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 528,000 per year $ $ 11 per unit $ 110,000 per year

Required information Exercise 6-3 (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 44,000 units and sold 36,0 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 528,000 per year $ $ 11 per unit $ 110,000 per year

FINANCIAL ACCOUNTING
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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Required information Exercise 6-3 (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 44,000 units and sold 36,000 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 Exercise 6-3 (Algo) Part 2a 2a. Assume the company uses variable costing. Determine its total product cost per unit. Variable costing Per unit product cost using: Total product cost per unit 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 $140 per unit. Direct materials. Direct labor Variable overhead. Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Exercise 6-3 (Algo) Part 2b $ 60 per unit $ 22 per unit $8 per unit $ 528,000 per year $ 11 per unit $ 110,000 per year Income Income Statement (Variable Costing) $ 60 per unit $ 22 per unit $ 8 per unit 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. $ 528,000 per year $ 11 per unit $ 110,000 per year
Transcribed Image Text:Required information Exercise 6-3 (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 44,000 units and sold 36,000 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 Exercise 6-3 (Algo) Part 2a 2a. Assume the company uses variable costing. Determine its total product cost per unit. Variable costing Per unit product cost using: Total product cost per unit 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 $140 per unit. Direct materials. Direct labor Variable overhead. Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Exercise 6-3 (Algo) Part 2b $ 60 per unit $ 22 per unit $8 per unit $ 528,000 per year $ 11 per unit $ 110,000 per year Income Income Statement (Variable Costing) $ 60 per unit $ 22 per unit $ 8 per unit 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. $ 528,000 per year $ 11 per unit $ 110,000 per year
Required information Exercise 6-3 (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 44,000 units and sold 36,000 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 Exercise 6-3 (Algo) Part 1a 1a. Assume the company uses absorption costing. Determine its total product cost per unit. Per unit product cost using: Total product cost per unit Absorption costing $60 per unit $22 per unit $8 per unit $ 528,000 per year $ 11 per unit $ 110,000 per year Required information Exercise 6-3 (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 44,000 units and sold 36,000 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 Income Statement (Absorption Costing) $ 60 per unit $ 22 per unit $8 per unit $ 528,000 per year $ 11 per unit $ 110,000 per year Exercise 6-3 (Algo) Part 1b 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing
Transcribed Image Text:Required information Exercise 6-3 (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 44,000 units and sold 36,000 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 Exercise 6-3 (Algo) Part 1a 1a. Assume the company uses absorption costing. Determine its total product cost per unit. Per unit product cost using: Total product cost per unit Absorption costing $60 per unit $22 per unit $8 per unit $ 528,000 per year $ 11 per unit $ 110,000 per year Required information Exercise 6-3 (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 44,000 units and sold 36,000 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 Income Statement (Absorption Costing) $ 60 per unit $ 22 per unit $8 per unit $ 528,000 per year $ 11 per unit $ 110,000 per year Exercise 6-3 (Algo) Part 1b 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing
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