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 37,000 Unita sold 32,000 Selling price per unit $ 82 Selling and administrative expenses Variable per unit $4 Fixed per month) $ 558,000 Manufacturing costs Direct materials cost per unit $ 16 Direct labor cost per unit $ 10 Variable manufacturing overhead cost per unit Fixed manutacturing overhead coat (per month) 5.703,000 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 Calculate the unit product cost. b. Prepare a contribution format income statement for May 51 Complete this question by entering your answers in the table below. Red 1A Reg 13 Reg 2A Reg 26 Determine the unit product cost. Assume that the company uses absorption costing, Un productos 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. Reg 1A Reg 18 Reg 2A Reg 28 Prepare an income statement for May. Assume that the company uses absorption costing. High Country, Incorporated Absorption Costing Income Statement Fixed (per month) $ 558,000 Manufacturing costs Direct materials cost per unit $ 16 $ 10 Direct labor cost per unit Variable manufacturing overhead cont per unit $1 Fixed manufacturing overhead cost (per month) $ 703,000 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. Complete this question by entering your answers in the table below. Req1A Reg 1B Reg 2A Reg 2B Determine the unit product cost. Assume that the company uses variable costing. Unit product cost 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. Reg 1A Reg 1B Req 2A Reg 2B Prepare a contribution format income statement for May. Assume that the company uses variable costing, High Country. Incorporated Variable Costing Income Statement
