Required Information Exercise 6-3 (Algo) 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 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 $ 480,00 per year $ 12 per unit $ 105,000 per year Exercise 6-3 (Algo) Part 1b 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing. Answer is not complete. Income Statement (Absorption Costing) Sales s Cost of goods sold Gross profit Selling and administrative expenses 32,000 X 40,000 X -8.000 Income (8,000) Required Information Exercise 6-3 (Algo) 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 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 $ 12 per unit $ 105,00 per year Exercise 6-3 (Algo) Part 2 20. Assume the company uses variable costing. Determine its total product cost per unit. Answer is not complete. Variable Per unit product cost using: costing Direct labor per unit Direct materials per unit Fixed overhead per unit X Variable overhead per unit Total product cost per unit 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 $ 48 per unit Direct labor $ 18 per unit Variable overhead $6 per unit Fixed overhead $ 400,eee per year Variable selling and administrative expenses $ 12 per unit Fixed selling and administrative expenses $ 105,eee per year Exercise 6-3 (Algo) Part 2b 2b. Assume the company uses variable costing. Prepare its Income statement for the year under variable costing. Answer is not complete. Income Statement (Variable Costing) Sales Less: Fixed expenses x Variable selling and administrative expenses X Variable cost of goods sold > Income