Cool Sky reports the following costing data on its product for its first year of operations. Year,
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Manufacturing costs
Direct materials per unit......................................$60
Direct labor per unit..........................................$22
Variable overhead per unit....................................$8
Fixed overhead for the year...........................$528,000
Selling and administrative costs
Variable selling and administrative cost per unit.........$11
1. Assume the company uses absorption costing.
a. Determine its product cost per unit.
b. Prepare its income statement for the year under absorption costing.
2. Assume the company uses variable costing.
a. Determine its product cost per unit.
b. Prepare its income statement for the year under variable costing.
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Related Book For
Financial and Managerial Accounting Information for Decisions
ISBN: 978-0078025761
6th edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
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