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Required information

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Cool Sky reports the following for its first year of operations. The company produced $42,000$ units and sold $34,000$ 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

$$12$ per unit

$$115,000$ per year

$1$b$.$ Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing.