Coverall Inc. produces and sells a unique type of case for a stan computer that is guaranteed waterproof but still allows for regular fun tablet. The company has just opened a new plant to manufacture these following cost and revenue data have been provided for thefirst mont operation in the form of a worksheet:

Beginning inventory $0

Units produced 38000

Units sold 24000

Selling price per unit $95

Selling and administrative expenses:

Variable per unit $11

Fixed (total) $672,000

Manufacturing costs:

Direct materials cost per unit $16

Direct labour cost per unit $12

Variable manufacturing overhead cost per unit $6

Fixed manufacturing overhead cost (total) $1064000

Since the new case is unique in design, management is anxious to see how profitable it will be and has asked that an income statement be prepared for the month.

1) Assume that the company uses absorption costing.

a) Determine the unit product cost.

b) Make an income statement for the month.(Do not leave any empty spaces; input a 0 wherever it is required.)

2) Assume the company uses variable costing

a) Determine the unit product cost.

b) Make a contribution format income statement for the month.(Do not leave any empty spaces; input a 0 wherever it is required.)