Required information Exercise 06-9 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 year, the company produced 44,000 units and sold 36,000 units at a price of $140 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 60 22 8 528,000 $ 120,000 Exercise 06-9 Part 1a 1a. Assume the company uses absorption costing. Determine its product cost per unit. Per unit product cost using: Absorption costing Total cost per unit Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead 60 22 the year 528,000 Selling and administrative costs Variable selling and administrative cost per unit Fixed selling and administrative cost per year $120,000 Exercise 06-9 Part 1b 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. COOL SKY Absorption Costing Income Statement 0 0 Net income (loss) Exercise 06-9 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 year, the company produced 44,000 units and sold 36,000 units at a price of $140 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 60 22 8 528,000 $ 120,000 Exercise 06-9 Part 2a 2a. Assume the company uses variable costing. Determine its product cost per unit. Variable Per unit product cost using: costing Total cost per unit Sy tne omwrg tosg data onntSp produced 44,000 units and sold 36,000 units at a price of $140 per unit. MStyear peranors. Dung rs TMSTyea, TE compan Manufacturing costs Direct materials per unit 60 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 22 8 528,000 $ $120,000 Exercise 06-9 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 (loss)
