$[$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 $$120$ per unit.

Direct materials

Direct labor

Variable overhead

Fixed overhead

Variable selling and administrative expenses

Fixed selling and administrative expenses

Exercise $6-3($Algo$)$ Part $1$b

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