Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Required information 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 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 Pixed overhead for the year Selling and administrative costs Variable selling and administrative cost per unit Fixed selling and administrative cost per year Exercise 19-9 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 Exercise 19-9 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 Net income (loss) n produced 44,000 units and sold 36,000 units at a price of $140 per unit. $ 60 22 art 3 of 4 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 $528,000 $ 10 $110.000 eBook Exercise 19-9 Part 2a 2a. Assume the company uses variable costing. Determine its product cost per unit. Hint ei a: 1 Per unit product cost using: Variable costing Print Total cost per unit References $528,000 Fixed overhead for the year Selling and administrative costs Variable selling and administrative cost per unit Pixed selling and administrative cost per year $ 10 $110,000 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 nces Net income (loss)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Computerized Accounting Using QuickBooks Pro 2020

Authors: Alvin A. Arens, D. Dewey Ward, Carol J. Borsum

6th Edition

0912503793, 9780912503790

More Books

Students explore these related Accounting questions