Required information

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[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 $130 per unit.

Direct materials

$ 54

per unit

Direct labor

$ 20

per unit

Variable overhead

$ 6

per unit

Fixed overhead

$ 462,000

per year

Variable selling and administrative expenses

$ 10

per unit

Fixed selling and administrative expenses

$ 105,000

per year

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

tion costing.

Required information [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 $130 per unit. 1b. Assume the company uses absorption costing. Prepare its income statement for the year under absorption costing