Required information [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 42,000 units and sold 34,000 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 $504,000 10 $100,000 1a. Assume the company uses absorption costing. Determine its product cost per unit. Answer is complete and correct. Absorption Per unit product cost using: costing Direct materials per unit 60.00 Direct labor per unit Variable overhead per unit Fixed overhead per unit Total cost per unit 22.00 8.00 12.00 $ > $ 102.00 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. COOL SKY Absorption Costing Income Statement Sales Less: Cost of goods sold Direct materials Direct labor Variable overhead costs Fixed overhead costs 0 Cost of goods sold Net income Selling general and administrative expenses Variable selling and administrative expenses Fixed selling and administrative costs 0 Net income (loss) 2a. Assume the company uses variable costing. Determine its product cost per unit. Per unit product cost using: Variable costing Total cost per unit 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)