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 $82 Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses Variable per unit Tixed (per month) Manufacturing costs: Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead coat (per month) $3 $559,000 $17 $9 $2 $882,000 Management is anxious to see how profitable the new camp cot will be and has asked that an income statement be prepared for May. Required: 1. Assume that the company uses absorption costing. a. Determine the unit product cost. Unit product cost b. Prepare an income statement for May. High Country, Inc. Absorption Costing Income Statement 0 2. Assume that the company uses variable costing. a. Determine the unit product cost. Unit product cost b. Prepare a contribution format income statement for May. High Country, Inc. Variable Costing Income Statement Variable expenses: 0 0 Fixed expenses: 0 $ 0