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Required information Exercise 19-3 (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 $48 per unit Direct labor $ 18 per unit Variable overhead $ 6 per unit Fixed overhead $ 400,000 per year Variable selling and administrative expenses $10 per unit Fixed selling and administrative expenses $ 105,000 per year Exercise 19-3 (Algo) Part 2b 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.

          Required information
Exercise 19-3 (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  $48 per unit
Direct labor  $ 18 per unit
Variable overhead  $ 6 per unit
Fixed overhead  $ 400,000 per year
Variable selling and administrative expenses $10 per unit
Fixed selling and administrative expenses $ 105,000 per year

Exercise 19-3 (Algo) Part 2b
2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.

required information exercise 19 3 algo income statement under absorption costing and variable costing lo p1 p2 the following information applies to the questions displayed below cool sky re 35497

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