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

$[$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 $$150$ per unit.

Direct materials

Direct labor

Variabl$$ overhead

Fixed overhead

Variable selling and administrative expenses

$\backslash$table$[[$$$66,$per unit$],[$$$25,$per unit$],[$$$9,$per unit$],[$$$546,000,$per year$],[$$$10,$per unit$],[$$$120,000,$per year$]]$

$1$a$.$ Assume the company uses absorption costing. Determine its total product cost per unit.

$\backslash$table$[[$Per unit product cost using:,Absorption costing$],[,],[,],[,],[,],[,],[$Total product cost per unit,$]]$

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