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 $ 60 per unit $ 22 per unit $8 per unit $ 528,000 per year $11 per unit $ 115,000 per year Exercise 6-3 (Algo) Part 1a 1a. Assume the company uses absorption costing. Determine its total product cost per unit. Answer is not complete. Per unit product cost using: Direct labor Direct materials Absorption costing 22 60 Fixed overhead Variable overhead Total product cost per unit 8 90 [The following information applies to the questions displayed 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 $60 per unit $ 22 per unit $8 per unit $ 528,000 per year $ 11 per unit $ 115,000 per year Exercise 6-3 (Algo) Part 1b 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. Answer is not complete. Income Statement (Absorption Costing) Sales Cost of goods sold Gross profit Selling and administrative expenses Income 0 0 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 Exercise 6-3 (Algo) Part 2a 2a. Assume the company uses variable costing. Determine its total product cost per unit. Per unit product cost using: Variable costing $60 per unit $ 22 per unit $8 per unit $ 528,000 per year $ 11 per unit $ 115,000 per year Total product cost per unit 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 $60 per unit $ 22 per unit $8 per unit $ 528,000 per year $ 11 per unit $ 115,000 per year Exercise 6-3 (Algo) Part 2b 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. Income Statement (Variable Costing) Income