Brock Company produces and sells an industrial product. The company has just opened a new plant to manufacture the product, and the following cost and revenue data have been provided for the first month of the plants operation.

Beginning inventory		0
Units produced		47,000
Units sold		42,000
Selling price per unit	$	79
Selling and administrative expenses:
Variable per unit	$	4
Fixed (total)	$	562,000
Manufacturing costs
Direct materials cost per unit	$	14
Direct labor cost per unit	$	7
Variable manufacturing overhead cost per unit	$	2
Fixed manufacturing overhead cost (total)	$	846,000

Required:

1.	Assume that the company uses absorption costing.

a.	Determine the unit product cost.

Unit product cost

$

b.	Prepare an income statement for the month. (Input all amounts as positive values except losses which should be indicated by a minus sign.)

Absorption Costing Income Statement
(Click to select) Net operating income (loss) Cost of goods manufactured Gross margin Selling and administrative expenses Sales	$
(Click to select) Gross margin Selling and administrative expenses Net operating income (loss) Cost of goods sold Sales
(Click to select) Contribution margin Gross margin
(Click to select) Cost of goods sold Net operating income (loss) Selling and administrative expenses Gross margin Sales
(Click to select) Net operating income Net operating loss	$

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 the month. (Input all amounts as positive values except losses which should be indicated by a minus sign.)

Variable Costing Income Statement
(Click to select) Variable cost of goods sold Fixed selling and administrative expenses Fixed manufacturing overhead Variable selling and administrative expenses Sales Net operating income (loss) Contribution margin		$
Variable expenses:
(Click to select) Sales Variable selling and administrative expenses Variable cost of goods sold Fixed selling and administrative expenses Contribution margin Net operating income (loss) Fixed manufacturing overhead	$
(Click to select) Variable selling and administrative expenses Net operating income (loss) Sales Variable cost of goods sold Fixed selling and administrative expenses Contribution margin Fixed manufacturing overhead
(Click to select) Gross margin Contribution margin
Fixed expenses:
(Click to select) Sales Fixed selling and administrative expenses Contribution margin Net operating income (loss) Fixed manufacturing overhead Variable cost of goods sold Variable selling and administrative expenses
(Click to select) Variable selling and administrative expenses Net operating income (loss) Sales Variable cost of goods sold Fixed selling and administrative expenses Contribution margin Fixed manufacturing overhead
(Click to select) Net operating income Net operating loss		$