Required information Exercise 6-3 (Static) 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 ovechead 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 $ 105,000 per year Exercise 6-3 (Static) Part 2b 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.
Required information Exercise 6-3 (Static) 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 ovechead 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 $ 105,000 per year Exercise 6-3 (Static) 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
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Transcribed Image Text:Exercise 6-3 (Static) Part 2b
2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.
Income Statement (Variable Costing)
Income
![Required information
Exercise 6-3 (Static) 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
$ 60 per unit
$ 22 per unit
$ 8 per unit
$ 528,000 per year
$ 11 per unit
5 105,000 per year
Exercise 6-3 (Static) Part 2b
2b. Assume the company uses variable costing. Prepare its income statement for the year under vaniable costing.
Income Staternent (Variahle Costing)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd398efd6-5a92-43df-95cb-a61950735d81%2F146727db-e6de-40d1-b022-14a630f3f586%2Fjbo7949_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Exercise 6-3 (Static) 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
$ 60 per unit
$ 22 per unit
$ 8 per unit
$ 528,000 per year
$ 11 per unit
5 105,000 per year
Exercise 6-3 (Static) Part 2b
2b. Assume the company uses variable costing. Prepare its income statement for the year under vaniable costing.
Income Staternent (Variahle Costing)
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