$1$

Required information

Exercise $19-3($Static$)$ income statement under absorption costing and variable costing LO P$1,$ P$2$

$($The following informabion apples to the questions daplayed below$/$

Cool Siy reports the following for hs frst year of operations. The compary produced $44,000$ units and soidd $36,000$ units at a price of $$140$ per unit.

birect saterials

birect labor

Variable overhead

$1$

$50$ per unit

$522$ per vinit

Fixed overhead

seper unit

Variable selling and adsinistrative expenaes

s$2$e$,$ vee aer year

Fixed selting and adninlistrative expenses

s $1$es$,$ wil per year

Exercise $19-3($Static$)$ Part $2$b

$2$b$.$ Assume the compary ubes variatie costing. Prepare its income statement for the year under variable costing