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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.
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 | $ | 42 | |
Direct labor per unit | $ | 16 | |
Variable overhead per unit | $ | 5 | |
Fixed overhead for the year | $ | 396,000 | |
Selling and administrative costs | |||
Variable selling and administrative cost per unit | $ | 11 | |
Fixed selling and administrative cost per year | $ | 115,000 | |
1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing.
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