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 plants operation:

Beginning inventory		0
Units produced		50,000
Units sold		45,000
Selling price per unit	$	85
Selling and administrative expenses:
Variable per unit	$	3
Fixed (per month)	$	566,000
Manufacturing costs:
Direct materials cost per unit	$	16
Direct labor cost per unit	$	10
Variable manufacturing overhead cost per unit	$	3
Fixed manufacturing overhead cost (per month)	$	850,000

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.

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: points 50,000 45,000 85 eBook Print 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) References 566,000 16 10 3 $ 850,000 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. Complete this question by entering your answers in the table below. Management is anxious to assess the profitability of the new camp cot during the month of May. 10 points 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. eBook Print References Complete this question by entering your answers in the table below. Req 1A Reg 1a Req 1B Reg 1B Req 2A Req 2B Req 2B Determine the unit product cost. Assume that the company uses absorption costing. Unit product cost $ 46