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		46,000
Units sold		41,000
Selling price per unit	$	81
Selling and administrative expenses:
Variable per unit	$	3
Fixed (total)	$	563,000
Manufacturing costs
Direct materials cost per unit	$	16
Direct labor cost per unit	$	9
Variable manufacturing overhead cost per unit	$	3
Fixed manufacturing overhead cost (total)	$	736,000

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)Cost of goods manufacturedGross marginSelling and administrative expensesNet operating income (loss)Sales	$
(Click to select)Selling and administrative expensesNet operating income (loss)Gross marginSalesCost of goods sold
(Click to select)Gross marginContribution margin
(Click to select)SalesGross marginNet operating income (loss)Cost of goods soldSelling and administrative expenses
(Click to select)Net operating lossNet operating income	$

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)SalesNet operating income (loss)Fixed manufacturing overheadContribution marginFixed selling and administrative expensesVariable selling and administrative expensesVariable cost of goods sold		$
Variable expenses:
(Click to select)Fixed selling and administrative expensesContribution marginFixed manufacturing overheadVariable selling and administrative expensesNet operating income (loss)SalesVariable cost of goods sold	$
(Click to select)Variable selling and administrative expensesNet operating income (loss)Contribution marginVariable cost of goods soldFixed selling and administrative expensesFixed manufacturing overheadSales
(Click to select)Gross marginContribution margin
Fixed expenses:
(Click to select)Net operating income (loss)Fixed manufacturing overheadVariable cost of goods soldContribution marginSalesVariable selling and administrative expensesFixed selling and administrative expenses
(Click to select)Variable selling and administrative expensesNet operating income (loss)Contribution marginFixed selling and administrative expensesVariable cost of goods soldFixed manufacturing overheadSales
(Click to select)Net operating incomeNet operating loss		$