Exercise 6-9 Part 1a

Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 40,000 units and sold 32,000 units at a price of $140 per unit.

Manufacturing costs
Direct materials per unit	$	60
Direct labor per unit	$	22
Variable overhead per unit	$	8
Fixed overhead for the year	$	480,000
Selling and administrative costs
Variable selling and administrative cost per unit	$	9
Fixed selling and administrative cost per year	$	105,000

Per unit product cost using:	Absorption costing
Cost per unit

COOL SKY
Absorption Costing Income Statement
		0
		0
Net income (loss)

Per unit product cost using:	Variable costing
Cost per unit

COOL SKY
Variable Costing Income Statement
Net income (loss)