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High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will

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High Country, Inc., 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 first month of the plant's operation 49,000 44,000 84 $ Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed (per month) Manufacturing costs: Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead cost (per month) $ 565,000 $ 18 6 $ 3 $ 833,000 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. Determine the unit product cost. b. Prepare an income statement for May. 2. Assume that the company uses variable costing, a. Determine 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 Reg 2B Determine the unit product cost. Assume that the company uses absorption costing. Unit product cost REGA Req 1B > Complete this question by entering your answers in the table below. Req 1A Req 1B Req 2A Reg 2 Prepare an income statement for May. Assume that the company uses absorption costing. High Country, Inc. Absorption Costing Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income $ 0 o Complete this question by entering your answers in the table below. Req 1A Req 1B Req 2A Req 2B Determine the unit product cost. Assume that the company uses variable costing. Unit product cost Req 1A Req 1B Req 2A Req 2B Prepare a contribution format income statement for May. Assume that the company uses variable costing. High Country, Inc. Variable Costing Income Statement Sales Variable expenses Variable cost of goods sold Variable selling expenses 0 0 Contribution margin Fixed expenses Fixed manufacturing overhead Fixed selling and administrative expenses 0 Net operating income 0

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