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: @ 44,000 39,000 80 $ 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) $ 3 $ 567,200 $ 15 6 $ 1 $ 704,000 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. 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. Answer is complete but not entirely co correct. Complete this question by entering your answers in the table below. Req IA Req 18 Req 2A Reg 28 Determine the unit product cost. Assume that the company uses absorption costing. Unit product cost IS 38 Req 1A Reg 1B Reg 2A Reg 2B Prepare an income statement for May. Assume that the company uses absorption costing. High Country, Inc. Absorption Costing Income Statement Sales $ 3,120,000 Cost of goods sold 1,562,000 Gross margin 1,558,000 Selling and administrative expenses 684,000 Net operating income S 874,000 Complete this question by entering your answers in the table below. Reg 1A Reg 1B Req 2A Req 28 Determine the unit product cost. Assume that the company uses variable costing. " Unit product cost S 22 Req 1A Reg 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 $ 3,120,000 x $ Variable expenses: Indirect materials Indirect labor Variable cost of goods sold Variable selling expense Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expense 585,000 234,000 39,000 117,000 975,000 2,145,000 704,000 567,000 Fixed selling and administrative expense Net operating income 1,271,000 $ 874,000