Question
Cool Sky reports the following for its first year of operations. The company produced 42,000 units and sold 34,000 units at a price of $110
Cool Sky reports the following for its first year of operations. The company produced 42,000 units and sold 34,000 units at a price of $110 per unit.
Direct materials | $ 42 | per unit |
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Direct labor | $ 16 | per unit |
Variable overhead | $ 5 | per unit |
Fixed overhead | $ 378,000 | per year |
Variable selling and administrative expenses | $ 12 | per unit |
Fixed selling and administrative expenses | $ 105,000 | per year |
Exercise 6-3 (Algo) Part 1a
1a. Assume the company uses absorption costing. Determine its total product cost per unit
Per unit product cost using: | Absorption costing |
Total product cost per unit |
1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing.
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2a. Assume the company uses variable costing. Determine its total product cost per unit.
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2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.
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