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:

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.

High Country, lnc., 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: Beginning inventory 8 Units produced 45,866 Units sold 46,866 Selling price per unit $ 86 Selling and administrative expenses: Variable per unit $ Fixed (per month) $ 569,866 Manufacturing costs: Direct materials cost per unit $ 15 Direct labor cost per unit $ Variable manufacturing overhead cost per unit $ $ Fixed manufacturing overhead cost (per month) 816,866