Exercise 6-3 (Algo) Income statement under absorption costing and variable costing LO P1, P2

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[The following information applies to the questions displayed below.] Cool Sky reports the following for its first year of operations. The company produced 44,000 units and sold 36,000 units at a price of $130 per unit.

Direct materials	$ 54	per unit
Direct labor	$ 20	per unit
Variable overhead	$ 6	per unit
Fixed overhead	$ 484,000	per year
Variable selling and administrative expenses	$ 12	per unit
Fixed selling and administrative expenses	$ 115,000	per year

Exercise 6-3 (Algo) Part 1a

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

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Exercise 6-3 (Algo) Income statement under absorption costing and variable costing LO P1, P2

Skip to question

[The following information applies to the questions displayed below.] Cool Sky reports the following for its first year of operations. The company produced 44,000 units and sold 36,000 units at a price of $130 per unit.

Direct materials	$ 54	per unit
Direct labor	$ 20	per unit
Variable overhead	$ 6	per unit
Fixed overhead	$ 484,000	per year
Variable selling and administrative expenses	$ 12	per unit
Fixed selling and administrative expenses	$ 115,000	per year

Exercise 6-3 (Algo) Part 1a

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