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Exercise 19-9 Income statement under absorption costing and variable costing LO P1, P2 The following information applies to the questions displayed below.) Cool Sky reports

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Exercise 19-9 Income statement under absorption costing and variable costing LO P1, P2 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 the company produced 44,000 units and sold 36,000 units at a price of $140 per unit year, Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead for the year Selling and administrative cost Variable selling and administrative cost per unit Pred selling and administrative cost per year $ $ 22 $ 8 $528,000 $ 11 $ 105,000 References Section Break Exercise 19-9 Income statement under absorption costing and variable costing LO P1, P2 1. 115 points Exercise 19-9 Part 1a 1a. Asume the company uses absorption costing. Determine is product cost per unit. Per unit product cost using Die materials per unit forect labot per unit Variable overhead per unit Fored overhead por unit Absorption costing + 60 22 8 12 Cost per unit 102 Exercise 19-9 Part 1b 1b. Assume the company uses absorption costing. Prepare its income statement for the absorption costing, year under COOL SKY Absorption Costing Income Statement Sales Less: Cost of goods sold Direct materials Variable selling and administrative expenses $ 5,040,000 Net income 4,488,000 Net income (loss) Exercise 19-9 Part 2a 2a. Assume the company uses variable costing. Determine its product cost per unit. Per unit product cost using: Direct materials per unit Direct labor per unit Nariable overhead per unit Variable costing 60 22 8 Cost per unit $ 90 Exercise 19-9 Part 2b 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing COOL SKY Variable Costing Income Statement Net Income (105)

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