EX: 6-9

Required Information (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 44,000 units and sold 36.000 units at a price of $120 per unit Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead for the year Selling and administrative costs Variable selling and administrative cost per unit Fixed selling and administrative cost per year $ 48 $ 18 $ 6 $ 440,aee $ 10 $ 185, eee 1b. Assume the company uses absorption costing. Prepare its Income statement for the year under absorption costing. Answer is not complete. COOL SKY Absorption Costing Income Statement Sales $ 4,320.000 Plus: Fixed expenses Direct materials Direct labor Variable overhead costs Variable selling and administrative expenses Total variable costs 0 Contribution margin Net Income loss) 2b. Assume the company uses variable costing. Prepare Its Income statement for the year under variable costing. x Answer is not complete. COOL SKY Variable Costing Income Statement Sales Less: Variable costs Net income (loss)