Required information

Exercise $6-3($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 $\backslash (\backslash$$ $140\backslash )$ per unit.

Exercise $6-3($Algo$)$ Part $2$a

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

Required information

Exercise $6-3($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 $\backslash (\backslash$$ $140\backslash )$ per unit.

Direct materials

Direct labor

Variable overhead

Fixed overhead

Variable selling and administrative expenses

Fixed selling and administrative expenses

$\backslash$$ $60$ per unit

$\backslash (\backslash$$ $22\backslash )$ per unit

$\backslash$$ $8$ per unit

$\backslash$$ $504,000$ per year

$\backslash (\backslash$$ $11\backslash )$ per unit

$\backslash (\backslash$$ $100,000\backslash )$ per year

Exercise $6-3($Algo$)$ Part $2$b

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