Ch 0 Required information Exercise 6-9 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 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 $140 per unit. Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Pixed overhead for the year 60 $504,000 Selling and administrative costs Variable selling and administrative cost per unit Fixed selling and administrative cost per year s 10 $110,000 Exercise 6-9 Part 1b 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. COOL SKY Absorption Costing Income Statement $4,760,000 Less: Cost of goods sold Direct materials Direct labor Variable overhead costs Fixed overhead costs Fixed selling and administrative costs Cost of goods sold Net loss Net income Direct labor ixed overhead costs Net income (loss) Exercise 6-9 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 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 $140 per unit. Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead for the yea:r 60 $504,000 Selling and administrative costs Variable selling and administrative cost per unit Fixed selling and administrative cost per year 10 $110,000 Exercise 6-9 Part 2a 2a. Assume the company uses variable costing. Determine its product cost per unit. Variable costin Per unit product cost using Cost per unit Exercise 6-9 Part 2b 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing COOL SKY Variable Costing Income Statement Contribution margin Less: Variable costs Fixed selling and administrative costs Variable overhead costs Variable product costs Total variable costs Net loss Less: Variable costs Fixed overhead costs Variable product costs Net income (loss)