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	$	80
Selling and administrative expenses:
Variable per unit	$	4
Fixed (total)	$	563,000
Manufacturing costs
Direct materials cost per unit	$	17
Direct labor cost per unit	$	6
Variable manufacturing overhead cost per unit	$	3
Fixed manufacturing overhead cost (total)	$	874,000

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)Selling and administrative expensesSalesGross marginCost of goods manufacturedNet operating income (loss)	$
(Click to select)SalesNet operating income (loss)Cost of goods soldSelling and administrative expensesGross margin
(Click to select)Contribution marginGross margin
(Click to select)Gross marginNet operating income (loss)Selling and administrative expensesSalesCost of goods sold
(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)Variable cost of goods soldVariable selling and administrative expensesContribution marginFixed manufacturing overheadFixed selling and administrative expensesNet operating income (loss)Sales		$
Variable expenses:
(Click to select)Net operating income (loss)Fixed manufacturing overheadSalesVariable selling and administrative expensesVariable cost of goods soldContribution marginFixed selling and administrative expenses	$
(Click to select)Fixed manufacturing overheadVariable cost of goods soldVariable selling and administrative expensesFixed selling and administrative expensesSalesNet operating income (loss)Contribution margin
(Click to select)Gross marginContribution margin
Fixed expenses:
(Click to select)Fixed selling and administrative expensesNet operating income (loss)Contribution marginVariable selling and administrative expensesSalesFixed manufacturing overheadVariable cost of goods sold
(Click to select)Net operating income (loss)Variable selling and administrative expensesContribution marginVariable cost of goods soldFixed manufacturing overheadSalesFixed selling and administrative expenses
(Click to select)Net operating lossNet operating income		$