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 $40,000$ units and sold $32,000$ 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

$$400,000$ per year

$$11$ per unit

$$115,000$ per year