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 Beginning inventory Units produced Units sold Selling price per 20,000 15,000 Be $ 6 $475,00 Selling and administrative expenses: Variable per unit Fixed (total) Manufacturing costs: Direct materials cost per unit Direct labour cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead cost (total) $ 12 $ 9 5 5 $600, see 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: 1. Assume that the company uses absorption costing. a. Determine the unit product cost. Unit product cost $ 50 b. Prepare an income statement for the month (Do not move any empty spaces input a wherever it is required.) 3 1.200,000 0 1,120,000 1.120.000 Sales Cost of goods sold: Beginning inventory Add: Cost of goods manufactured Goods available for sale Less: Ending inventory Gross margin Selling and administrative expenses Operating loss 1,120,000 80,000 565,000 (485.000) $ 2. Assume that the company uses variable costing. a. Determine the unit product cost. s 20 Unit product cost b. Prepare a contribution format Income statement for the month. (Do not leave any empty spaces; Input a wherever it is required.) Sales Variable expenses: Variable cost of goods sold: Beginning inventory Add: Variable manufacturing costs Goods available for sale Less: Ending inventory Variable cost of goods sold 0 0 o 0 Contribution margin Fixed expenses Fixed manufacturing overhead Fixed selling and administrative expense 0 0