Blue Sky Company reports the following costing data on its product for its first year of operations. During this first year, the company produced 42,000 units and sold 34,000 units at a price of $110 per unit.

Production costs
Direct materials per unit	$	42
Direct labor per unit	$	16
Variable overhead per unit	$	5
Fixed overhead for the year	$	378,000
Selling and administrative cost
Variable selling and administrative cost per unit	$	10
Fixed selling and administrative cost per year	$	115,000

31.

value: 2 points

1a.	Assume that this company uses absorption costing. Determine its unit product cost. (Omit the "$" sign in your response.)

Unit product cost

$ per unit

32.

value: 3 points

1b.	Assume that this company uses absorption costing. Prepare its income statement for the year under absorption costing. (Input all amounts as positive values except net loss which should be indicated with a minus sign. Omit the "$" sign in your response.)

BLUE SKY COMPANY Absorption Costing Income Statement
(Click to select)Fixed overheadVariable selling and aministrative expensesSelling and administrative expensesSalesFixed selling and administrative expenses	$
(Click to select)Variable selling and administrative expensesSelling and administrative expensesCost of goods soldFixed selling and administrative expensesFixed overhead
(Click to select)Gross lossGross profit
(Click to select)Variable selling and administrative expensesSelling and administrative expensesSalesCost of goods soldFixed selling and administrative expenses
(Click to select)Net incomeNet loss	$

33.

value: 2 points

2a.	Assume that this company uses variable costing. Determine its unit product cost. (Omit the "$" sign in your response.)

Unit product cost

$ per unit

34.

value: 3 points

2b.	Assume that this company uses variable costing. Prepare its income statement for the year under variable costing. (Input all amounts as positive values except net loss which should be indicated with a minus sign. Omit the "$" sign in your response.)

BLUE SKY COMPANY Variable Costing Income Statement
(Click to select)Fixed manufacturing costsSalesVariable production costsCost of goods soldSelling and administrative expenses		$
Variable expenses
(Click to select)Fixed manufacturing costsVariable production costsFixed selling and administrative expensesVariable selling and administrative expensesSales	$
(Click to select)Fixed selling and administrative expensesFixed manufacturing costsSalesVariable production costsVariable selling and administrative expenses
Total variable expenses
(Click to select)Gross marginContribution margin
Fixed expenses
(Click to select)Fixed selling and administrative expensesFixed manufacturing costsSalesVariable manufacturing expenseVariable selling and administrative expenses
(Click to select)Variable selling and administrative expensesFixed manufacturing costsVariable manufacturing expenseSalesFixed selling and administrative expenses
Total fixed expenses
(Click to select)Net incomeNet loss		$