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Saved Help Save & EX Check Required information Exercise 06-9 Income statement under absorption costing and variable costing LO P1, P2 [The following information applies

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Saved Help Save & EX Check Required information Exercise 06-9 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 $110 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 42 $ 16 5 $ 396,000 $ $ 12 $110,000 Exercise 06-9 Part 1a 1a. Assume the company uses absorption costing. Determine its product cost per unit Per unit product cost usina: Absorption costing here to search ORI $ 16 $ 5 $396,000 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 $ 12 $110,000 Exercise 06-9 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 search ORA Required information COOL SKY Absorption Costing Income Statement 0 0 be here to search o To F6 Prt N FB FO F10 $ % A 2 * & 3 4 5 6 7 8 9 o 14 Saved Exercise 06-9 Part 2a 2a. Assume the company uses variable costing. Determine its product cost per unit. Per unit product cost using: Variable costing Total cost per unit ances w e here to search Bi Required information 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)

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