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:

Beginning inventory0Units produced37,000Units sold32,000Selling price per unit$82Selling and administrative expenses:Variable per unit$4Fixed (per month)$569,000Manufacturing costs:Direct materials cost per unit$17Direct labor cost per unit$9Variable manufacturing overhead cost per unit$3Fixed manufacturing overhead cost (per month)$703,000

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.