High Country, Incorporated, 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 Selling price per unit Selling and administrative expenses: Variable per unit Fixed (per month) Manufacturing costs: Direct materials cost per unit 0 39,000 34,000 $ 79 $ 3 $ 563,000 Direct labor cost per unit Variable manufacturing overhead cost per unit $ 15 $ 6 $ 2 $ 702,000 Fixed manufacturing overhead cost (per month) 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. Determine the unit product cost. Assume that the company uses absorption costing. Unit product cost Prepare an income statement for May. Assume that the company uses absorption costing. High Country, Incorporated Absorption Costing Income Statement 0 $ 0 Determine the unit product cost. Assume that the company uses variable costing. Unit product cost Prepare a contribution format income statement for May. Assume that the company uses variable costing. High Country, Incorporated Variable Costing Income Statement 0 0 0 0