$!!$

Required information

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 $44,000$ units and sold $36,000$ units

at a price of $$120$ per unit.

Direct materials

Direct labor

Variable overhead

Fixed overhead

Variable selling and administrative expenses

Fixed selling and administrative expenses

Exercise $19-3($Algo$)$ Part $2$a

$2$a$.$ Assume the company uses variable costing. Determine its total product cost per unit. $!$

Required information

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 $44,000$ units and sold $36,000$ units

at a price of $$120$ per unit.

Direct materials

Direct labor

Variable overhead

Fixed overhead

Variable selling and administrative expenses

Fixed selling and administrative expenses

$$48$ per unit

$$18$ per unit

$$6$ per unit

$$440,000$ per year

$$11$ per unit

$$105,000$ per year

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

$2$b$.$ Assume the company uses variable costing. Prepare its income statement for the year under variable costing.

Required information

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 $44,000$ units and sold $36,000$ units

at a price of $$120$ per unit.

Direct materials

Direct labor

Variable overhead

Fixed overhead

Variable selling and administrative expenses

Fixed selling and administrative expenses

Exercise $19-3($Algo$)$ Part $1$b

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