Explanation of Difference in Net Operating Income (L06-1, LO6-2, LO6-3) anve Exit Kamala Harris Ltd, produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the rest month of the plant's operation 0 40,000 35,000 78 5 Boginning inventory Unita produced Units sold Selling price per unit Selling and admin utrative oxpontos Variable per unit Pixed (per month) Manufacturing costs: Direct materiale cont per unit Direct labor coat por unit Variable manufacturing overhead cont per unit Pixed manufacturing overhead cont (per month) 3 561.000 8 37 $ 1 $ 640.000 Management is anxious to assess the profitability of the new camp col during the month of May Required: 1. Assume that the company uses absorption costing. a. Calculate the unit product cost. b. Prepare an income statement for May Management is anxious to assess the profitability of the new camp cot during the month of May. Required: 1. Assume that the company uses absorption costing. a Calculate the unit product cost. b. Prepare an income statement for May 2. Assume that the company uses variable costing a. Calculate the unit product cost. b. Prepare a contribution format income statement for May Complete this question by entering your answers in the table below. Reg 1A Reg 1B Reg 2A Reg 26 Determine the unit product cost. Assume that the company uses absorption costing. Unit product cost Reg 1 Req 1B > 2. Assume that the company uses variable costing. a. Calculate the unit product cost. b. Prepare a contribution format income statement for May. Complete this question by entering your answers in the table below. Reg 1A Req 18 Req 2A Req 26 Prepare an income statement for May. Assume that the company uses absorption costing, High Country, Inc. Absorption Costing Income Statement Villany new camp cot during the month of May. Required: 1. Assume that the company uses absorption costing. a. Calculate the unit product cost. b. Prepare an income statement for May 2. Assume that the company uses variable costing. a. Calculate the unit product cost. b. Prepare a contribution format income statement for May Complete this question by entering your answers in the table below. Req 1A Req 1B Req 2A Req 28 Determine the unit product cost. Assume that the company uses variable costing. Unit product cost Req 1B Req 2B > a. Calculate the unit product cost. b. Prepare a contribution format income statement for May Complete this question by entering your answers in the table below. Req 1A Req 18 Reg 2A Req 28 Prepare a contribution format income statement for May. Assume that the company uses variable costing High Country, Inc. Variable Costing Income Statement Prepare a contribution format income statement for May. Assume that the company uses variable costing, High Country, Inc. Variable Costing Income Statement
