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 $150 per unit.           Manufacturing costs       Direct materials per unit $ 66   Direct labor per unit $ 25   Variable overhead per unit $ 9   Fixed overhead for the year $ 572,000   Selling and administrative costs       Variable selling and administrative cost per unit $ 12   Fixed selling and administrative cost per year $ 110,000       2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.

Diego Company manufactures one product that is sold for $79 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 50,000 units and sold 45,000 units.   Variable costs per unit:   Manufacturing:   Direct materials $ 29 Direct labor $ 16 Variable manufacturing overhead $ 2 Variable selling and administrative $ 4 Fixed costs per year:   Fixed manufacturing overhead $ 800,000 Fixed selling and administrative expense $ 516,000     The company sold 35,000 units in the East region and 10,000 units in the West region. It determined that $240,000 of its fixed selling and administrative expense is traceable to the West region, $190,000 is traceable to the East region, and the remaining $86,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only…

Walsh Company manufactures and sells one product. The following information pertains to the company's first two years of operations: variable cost per unit manufacturing direct materials $30 direct labor $12 variable manufacturing overhead $5 variable selling and administrative $4; fixed costs per year, fixed manufacturing overhead $240,00 fixed selling and administrative expenses $60,000. During its first years of operations, Walsh produced 50,000 units and sold 40, 000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company's product is $51 per unit. Assume the company uses variable costing. Prepare an income statement for Year 1 and 2. Assume that the company uses absorption costing. Compute the unit product cost for year 1 and 2. Assume the company uses absorption costing. Prepare an income statement for Year 1 and 2. Reconcile the difference between variable costing and absorption costing net operating income in…

Diego Company manufactures one product that is sold for $77 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 59,000 units and sold 54,000 units.   Variable costs per unit:   Manufacturing:   Direct materials $ 27 Direct labor $ 10 Variable manufacturing overhead $ 2 Variable selling and administrative $ 3 Fixed costs per year:   Fixed manufacturing overhead $ 1,298,000 Fixed selling and administrative expense $ 662,000   The company sold 41,000 units in the East region and 13,000 units in the West region. It determined that $330,000 of its fixed selling and administrative expense is traceable to the West region, $280,000 is traceable to the East region, and the remaining $52,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only…