Required information Exercise 19-3 (Algo) 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 for its first year of operations. The company produced 42,000 units and soid 34,000 units at a price of $120 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $48 per unit $18 per unit $6 per unit $420,000 per year $11 per unit $100,000 per year Exercise 19-3 (Algo) Part 2b 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. 14 (1) Required information Part 4 of 4 \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ (x) Answer is complete but not entirely correct. } \\ \hline \multicolumn{3}{|c|}{ Income Statement (Variable Costing) } \\ \hline Sales & & \$ 4,420,000 \\ \hline Less: Variable expenses & & \\ \hline Variable cost of goods sold & $2,720,000 & \\ \hline Variable selling and administrative expenses & 374,000 & \\ \hline Fixed overhead & & 3,094,000 \\ \hline Contribution margin & & 1,326,000 \\ \hline Less: Fixed expenses & & \\ \hline Fixed overhead & 462,000 & \\ \hline \multirow[t]{2}{*}{ Fixed selling and administrative expenses } & 115,000 & \\ \hline & & 577,000 \\ \hline Income & & 749,000 \\ \hline \end{tabular} 0.83 points \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Income Statement (Variable Costing) } \\ \hline Sales & & $4,420,000 \\ \hline Less: Variable expenses & & \\ \hline Variable cost of goods sold & $2,720,000 & \\ \hline Variable selling and administrative expenses & 374,000 & \\ \hline Fixed overhead & & 3,094,000 \\ \hline Contribution margin & & 1,326,000 \\ \hline Less: Fixed expenses & & \\ \hline Fixed overhead & 462,000 & \\ \hline \multirow[t]{2}{*}{ Fixed selling and administrative expenses } & 115,000 & \\ \hline & & 577,000 \\ \hline Income & & 749,000 \\ \hline \end{tabular} Prev 14 of 15 Next >