Exam $2$ Ch $18-20$

i

Required information

$[$The following information applies to the questions displayed below.$]$

Cool Sky reports the following for its first year of operations. The company produced $46,000$ units and sold $38,000$ units at a price of $$120$ per unit.

Direct materials

Direct labor

Variable overhead

$$48$ per unit

Fixed overhead

$$6$ per unit

Variable selling and administrative expenses

$$460,000$ per year

Fixed selling and administrative expenses

$$115,000$ per year

$02$:$48$:$40$

$1$b$.$ Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing.

$\backslash$table$[[$Income Statement $($Absorption Costing$)],[,],[,],[,],[,]]$