1:12 AM Sat Jun 20 ezto meducation.com 7. vale 10.00 points High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant's operation: 0 43,000 38,000 $84 Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Faced per month Manufacturing costs Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead cost per month $3 $ 564,000 $16 $7 $3 $ 731,000 Management is anxious to see how profitable the new camp cot will be and has asked that an income statement be prepared for May Required: 1. Assume that the company uses absorption costing a. Determine the unit product cost. Unit product cost b. Prepare an income statement for May High Country, Inc. Absorption Costing Income Statement Sat Jun 20 @esto meducation.com 2. Assume that the company uses variable costing a. Determine the unit product cost Unit product cost b. Prepare a contribution format income statement for May High Country, Inc. Variable Costing Income Statement Variable expenses: Fixed expenses References eBook & Resources Worksheet Learning operating Learning Objective: 06-01 Explain how variable costing differs from absorption costing and compute unit product costs under each method Difficulty: 1 Easy Learning Objective: 06-02 Prepare income statements using both variable and absorption costing 1:12 AM Sat Jun 20 ezto meducation.com 7. vale 10.00 points High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant's operation: 0 43,000 38,000 $84 Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Faced per month Manufacturing costs Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead cost per month $3 $ 564,000 $16 $7 $3 $ 731,000 Management is anxious to see how profitable the new camp cot will be and has asked that an income statement be prepared for May Required: 1. Assume that the company uses absorption costing a. Determine the unit product cost. Unit product cost b. Prepare an income statement for May High Country, Inc. Absorption Costing Income Statement Sat Jun 20 @esto meducation.com 2. Assume that the company uses variable costing a. Determine the unit product cost Unit product cost b. Prepare a contribution format income statement for May High Country, Inc. Variable Costing Income Statement Variable expenses: Fixed expenses References eBook & Resources Worksheet Learning operating Learning Objective: 06-01 Explain how variable costing differs from absorption costing and compute unit product costs under each method Difficulty: 1 Easy Learning Objective: 06-02 Prepare income statements using both variable and absorption costing
