Return to questic ! Required information Exercise 6-3 (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 sold 34,000 units at a price of $140 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 60 per unit $ 22 per unit $ 8 per unit $ 504,000 per year $10 per unit $ 105,000 per year Exercise 6-3 (Algo) Part 1a 1a. Assume the company uses absorption costing, Determine its total product cost per unit. Answer is complete and correct. Drinking Absorption Prey CD 1 2 3 4 of 4 Next > Return to question Exercise 6-3 (Algo) Part 1a 1a. Assume the company uses absorption costing. Determine its total product cost per unit Answer is complete and correct. Per unit product cost using: Absorption costing Direct materials S 60 Direct labor 22 Variable overhead 8 Fixed overhead 12 ooo Total product cost per unit $ 102 30 lar. It does not indicate completion. Return to question Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses 5 504,000 per year $10 per unit $ 105,000 per year 14 Exercise 6-3 (Algo) Part 1b 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. Answer is complete but not entirely correct. Income Statement (Absorption Costing) Sales $ 4,760,000 Cost of goods sold 3,468,000 Gross profit 1.292,000 Selling and administrative expenses 3.400 Income $ 1,288,600 Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate com 3 Reture uitect 1DOE Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses 14 per unit $ 8 per unit $ 504.000 per year $ 10 per unit $ 105,000 per year Part 3 of 4 Exercise 6-3 (Algo) Part 2a boints 20. Assume the company uses variable costing. Determine its total product cost per unit Answer is not complete. Per unit product cost using: Variable costing Total product cost per unit is correct or incorrect for the work you have completed so far. It does not indicate com Return 4. Exercise 6-3 (Algo) Part 2b art 4 of 4 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. Ints Answer is not complete. Per unit product cost using: Variable costing Total product cost per unit