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  3. cool sky reports the following costing data on its

Cool Sky reports the following costing data on its product for its first year of...

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Accounting

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Cool Sky reports the following costing data on its product for its first year of operations. During this first yeor, the company produced 42,000 units and sold 34,000 units at a price of $130 per unit Manufacturing costs Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead for the year 54 $ 20 $ 462,000 12 Selling and administrative cost Variable selling and administrative cost per unit Fixed selling and administrative cost per year $ 115,000 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing Answer is complete but not entirely correct. COOL SKY Variable Costing Income Statement Sales 4,420,000 Less: Variable costs Variable production costs Variable selling and administrative 2,720,000 408,000 Total variable costs Contribution margin Less: Fixed expenses Fixed overhead costs 3,128,000 1,292,000 204,000 Fixed selling and administrative costs 15,000 Total fixed expenses Net income (loss) 319,000 S 803,000

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