Required information Exercise 6-3 (Static) 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 44,000 units and sold 36.000 units at a price of $140 per unit. Direct materials Direct labor Variable ovechead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 60 per unit $ 22 per unit $ 8 per unit $ 528,000 per year $ 11 per unit $ 105,000 per year Exercise 6-3 (Static) Part 2b 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.
Required information Exercise 6-3 (Static) 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 44,000 units and sold 36.000 units at a price of $140 per unit. Direct materials Direct labor Variable ovechead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses $ 60 per unit $ 22 per unit $ 8 per unit $ 528,000 per year $ 11 per unit $ 105,000 per year Exercise 6-3 (Static) Part 2b 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.
Accounting
27th Edition
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Chapter21: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 21.28EX: Appendix Absorption costing income statement On June 30, the end of the first month of operations,...
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