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 $140 per unit. Direct materials. Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. Income Income Statement (Variable Costing) Sales Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses Variable overhead Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses $ 262,400 $ 4,480,000 $ 60 per unit $ 22 per unit. $ 8 per unit 480,000 per year $ 12 per unit $ 100,000 per year. $ 262,400

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
100%

Please do not give solution in image format thanku 

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 $140 per unit.
Direct materials.
Direct labor
Variable overhead
Fixed overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing.
Income
Income Statement (Variable Costing)
Sales
Less: Variable expenses
Variable cost of goods sold
Variable selling and administrative expenses
Variable overhead
Contribution margin
Less: Fixed expenses
Fixed overhead
Fixed selling and administrative expenses
$
262,400
$ 4,480,000
$ 60 per unit
$ 22 per unit.
$ 8 per unit
480,000 per year
$ 12 per unit
$ 100,000 per year.
$
262,400
Transcribed Image Text: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 $140 per unit. Direct materials. Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. Income Income Statement (Variable Costing) Sales Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses Variable overhead Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses $ 262,400 $ 4,480,000 $ 60 per unit $ 22 per unit. $ 8 per unit 480,000 per year $ 12 per unit $ 100,000 per year. $ 262,400
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education