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: 0 49,000 44,000 85 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 Pixed manufacturing overhead coat (per month) $ $ 562,000 $ 16 $ 10 $ 1 $ 931,000 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 Cho 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. Complete this question by entering your answers in the table t Assessment Tool iFrame Req 1A Req 1B Req 2A Req 2B Determine the unit product cost. Assume that the company uses absorption costing. Unit product cost 46 Regi1 Req 1B > 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. Complete this question by entering your answers in the table below. Req 1A Reg 1B Req 2A Req 2B 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 Net operating income $ 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 Complete this question by entering your answers in the table below. Req IA Reg 1B Req 2A Req 2B Determine the unit product cost. Assume that the company uses variable costing. Unit product cost 27 Le Ladie Ubuw. Req 1A Reg 1B Reg 2A Req 2B Prepare a contribution format income statement for May. Assume that the company uses var OK High Country, Inc. Variable Costing Income Statement st Sales hces Variable expenses: Variable cost of goods sold 0 Contribution margin Fixed expenses: 0 Fixed selling and administrative expense Fixed manufacturing overhead Net operating income 0 $
