Coverall Inc. produces and sells a unique type of case for a standard$-$size tablet computer that is guaranteed waterproof but still allows

for regular functionality of the tablet. The company has just opened a new plant to manufacture these cases, and the following cost

and revenue data have been provided for the first month of the plant's operation in the form of a worksheet:

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.

Required:

Assume that the company uses absorption costing.

a$.$ Determine the unit product cost.

Answer is complete and correct. b$.$ Prepare an income statement for the month. $($Do not leave any empty spaces; input a $0$ wherever it is required.$)$

Answer is complete but not entirely correct.

Assume that the company uses variable costing.

a$.$ Determine the unit product cost.

Answer is complete and correct. b$.$ Prepare a contribution format income statement for the month. $($Do not leave any empty spaces; input a $0$ wherever it is required.$)$

Answer is not complete.