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Accounting

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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 $140 per unit.
Direct materials
Direct labor
variable overhead
Fixed overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
$60 per unit
$22 per unit
$8 per unit
$504,000 per year
$11 per unit
$120,000 per year
2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.
\table[[Income Statement (Variable Costing),],[Sales,,],[Less: Variable expenses,,],[Variable cost of goods sold,,],[Variable selling and administrative expenses,,],[,,],[Contribution margin,,],[Less: Fixed expenses,504,000,],[Fixed overhead,120,000,],[Fixed selling and administrative expenses,,],[,,624,000],[Income,,]]
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