Required information Exercise 06-9 Income statement under absorption costing and variable costing LO P1, P2 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 40,000 units and sold 32,000 units at a price of $140 per unit Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead for the year Selling and administrative costs Variable selling and administrative cost per unit Fixed selling and administrative cost per year $480,000 $109,880 Exercise 06-9 Part 1a 10. Assume the company uses absorption costing. Determine its product cost per unit. Absorption costing Per unit product cost using: Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead per unit Total cost per unit Required information COOL SKY Absorption Costing Income Statement Sales Less: Cost of goods sold Direct materials Direct labor Variable overhead costs Fixed selling and administrative costs Net income (loss) Required information 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing COOL SKY Variable Costing Income Statement Net income (loss)