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 inventory

Units produced

Units sold $43,080$

Selling price per unit $,$$$,38,000$

selling and administrative expenses:

Variable per unit $$3$

Fixed $($per month$)$ $ $$558,000$

Manufacturing costs:

Direct materials cost per unit $$15$

Direct labor cost per unit $$8$

Variable manufacturing overhead cost per unit $$2$

Fixed manufacturing overhead cost $($per month$)$ $$817,000$

Management Is anxlous to assess the profitability of the new camp cot during the month of May.

Required:

Assume that the company uses absorption costing.

a$.$ Determine the unlt product cost.

b$.$ Prepare an Income statement for May.

Assume that the company uses varlable costing.

a$.$ Determine the unlt product cost.

b$.$ Prepare a contribution format Income statement for May.

Complete this question by entering your answers in the table below.

Req $1$A

Determine the unit product cost. Assume that the company uses absorption costing.