Question

Required information Exercise 06-9 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 costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units at a price of $130 per unit. Manufacturing costs Direct materials per unit 54 Direct labor per unit 20 Variable overhead per unit Fixed overhead for the year $484,200 Selling and administrative costs Variable selling and administrative cost per unit Fixed selling and administrative cost per year $105,000 Exercise 06.9 Part 1a

Answer 1

Answer Product cost per unit Product Cest is also known as the manufacturing Cost Factory cost or works cost. It is the cost incurred HiL the production profess. It is prekystten bit which include: | costs_like direct materjals, direct labows and many featuring Love, heads Manufacturing overheals ersts include variable many f4cbuning overheds_90d_fixed_07494 fchuing overheaks. - Product & Direct + Direct + many facturing cost materials Labour - overheats Solaylayoq_of product Cest per unit under Abarthian Gosting - Cool Sky Inc. Schedule of Product cost per unit Absvbhey stја Per unit Product Git Using : Product Gsts per unit Direct Materials ppe soil Direct latou per unit Magyfystyring Overheads varjalle cost per unit Fixed cost per unit ($484000 \ 44000 ygjus ! Total Proty it cost per unit 90 . Cool Sky Inc. has profyct cost Absorbtion Garg is $ Il per unit per unit under