Required Information

$[$The following information opplies to the guestions displayed below$]$

Cool Sky reports the following for its first year of operations. The company produced $42,000$ unrts and sold $3\mathrm{.}4,000$ units

at o price of $$110$ per unit.

Direct materials

Direct labor

Variable overhead

rixed averhead

Variabie se$11$ing and adeinistrative expenses.

Fixed sel$1$:ng and adninistrative expenses

$1$a$.$ Assume the company uses absorption costing. Determine its total product cost per unit.

$?$

Required Information

$[$The rollowing infomonon oplhes to the queswons olsployed below$]$

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

ot o price of $$110$ per unit.

Direct materiala

Direce labor

Vartable overhead

$3-4$fixed overhead

variable seliing and adeinistrative expenses

Fixed seliing and adninistrative expernses

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

Assume the company uses varlable costing. Determine its total product cost per unit.