Exercise 19-9 Income statement under absorption costing and variable costing LO P1, P2

Skip to question

[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 $130 per unit.

Manufacturing costs
Direct materials per unit	$	54
Direct labor per unit	$	20
Variable overhead per unit	$	6
Fixed overhead for the year	$	462,000
Selling and administrative costs
Variable selling and administrative cost per unit	$	11
Fixed selling and administrative cost per year	$	110,000

Exercise 19-9 Part 2b

2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.