Required information [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 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. Income Statement (Absorption Costing) Sales Cost of goods sold Gross profit Income Income $ $ $ 60 per unit $ 22 per unit $ 8 per unit 528,000 per year $ 11 per unit $ 105,000 per year $ 5,040,000 3,240,000 1,800,000 1,404,000 396,000

Required information [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 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. Income Statement (Absorption Costing) Sales Cost of goods sold Gross profit Income Income $ $ $ 60 per unit $ 22 per unit $ 8 per unit 528,000 per year $ 11 per unit $ 105,000 per year $ 5,040,000 3,240,000 1,800,000 1,404,000 396,000

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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