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Cool Sky reports the following costing data on its product for its first year of operations. During this first year, 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 Selling and administrative costs Variable selling and administrative cost per unit Fixed selling and administrative cost per year $ 54 $ 20 $ 6 $462,000 $ 9 $105,000 Exercise 19-9 Part 2b 2b. Assume the company uses variable costing. Prepare its income statement for the year under variable costing. COOL SKY Variable Costing Income Statement Exercise 19-10 Computing absorption costing income LO P3 A manufacturer reports the information below for three recent years. Variable costing income Beginning finished goods inventory (units) Ending finished goods inventory (units) Fixed manufacturing overhead per unit Year 1 $138,500 0 2,150 $ 1.40 Year 2 $144,800 2,150 1,650 $ 1.40 Year 3 $142,700 1,650 1,750 $ 1.40 Compute income for each of the three years using absorption costing. Year 1 Year 2 Year 3 Absorption costing income Sirhuds Inc., a maker of smartwatches, reports the information below on its product. The company uses absorption costing and has a target markup of 40% of absorption cost per unit. Direct materials cost Direct labor cost Variable overhead cost Fixed overhead cost Variable selling and administrative expenses Fixed selling and administrative expenses Expected production (and sales) 122 per unit $ 52 per unit $ 30 per unit $252,000 per year $ 14 per unit $175,000 per year 28,000 units per year Compute the target selling price per unit under absorption costing. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Direct materials Direct labor Variable overhead Fixed overhead Total product cost using absorption costing Target profit Target selling price Per unit $ 122.00 52.00 30.00 252,000.00 $ 252,204.00 $ 252,204.00

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