ES dy Question 4 Blue Mountain Products manufactures and sells a variety of camping goods. Recently, the company opened a new plant to manufacture a lightweight, self-standing tent. Cost and sales data for the first month of operations (June 2020) are as follows: Manufacturing costs Fixed overhead $231,080 Variable overhead $3.00 per tant Direct labour $15.70 per tent Direct material $40.40 per tent Beginning inventory O tents Tents produced 10.900 Tents sold 9,100 Selling and administrative costs Fixed $385,800 Variable $5.30 per tant sold The tent sells for $152. Management is interested the opening month's results and has asked for an income statement (a) Your answer is correct Assuming the company uses absorption costing 1. Calculate the manufacturing cost per unit. (Round answer to 2 decimal places, ... 25.75.) Manufacturing cost NO 30 per unit 2. Prepare an absorption-cotting income statement for the month of June 2020. (Hound per unit calculations to 2 decimal places, e.g. 15.25 and final answers to o decimal places, ... 125.) CES 2. Prepare an absorption costing income statement for the month of June 2020. (Round per unit calculations to 2 decimal places, eg. 15.25 and final answers to o decimal places, e.g. 125.) BLUE MOUNTAIN PRODUCTS Income Statement-Absorption Costing For the Month Ended Rune 30, 2020 Salt 1383200 udy LESE Cost of goods sold 730730 Gross profit 652470 Selling and administrative expenses Variable 40230 Food 385800 434030 Net income before 210440 SHOW SOLUTION Your answer is correct OURCES FALL Assuming the company uses variable costing! 1. Calculate the manufacturing cost per unt. (Round answer to 2 decimal places, e.g. 25.75.) Manufacturing Cost 59.10 per unit by Study 2. Prepare a variable-casting income statement for the month of June 2020. (Round per unit calculations to 2 decimal places, eg, 15.25 and final answers to o decimal places, e.g. 125.) BLUE MOUNTAIN PRODUCTS Income Statement-Variable Costing For the Month Ended June 30, 2020 1383200 Variatico Vitable cooods sold 537810 Variable selling and deve 48230 Total 586040 Contribution margir 797160 Netcome before tax 180210 (c) Reconcile the difference in net income between the absorption-costing and variable-costing methods. Reconciliation Statement Net income as per absorption costing $ Fixed overhead cost of ending inventory of tents Net income as per variable costing $