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High Country, Incorporated, produces and sells many recreational products. The company has just opened a new plant to produce a folding comp cot that will
High Country, Incorporated, produces and sells many recreational products. The company has just opened a new plant to produce a folding comp 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 40,000 units sold 35,000 Selling price per unit 530 Selling and administrative expenses: Variable per unit 5 Fixed (per month $570,000 Manufacturing costs Direct materials cost per unit $17 Direct labor cost per unit S8 Variable sanufacturing overhead cost per unit 51 Fixed manufacturing overhead cost per month) $750,000 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 3. 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 Req 1B Req 2A Req 2B Determine the unit product cost. Assume that the company uses absorption costing Unit product cost FA Req 16 > Complete this question by entering your answers in the table below. Req 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 Reg 1A Reg 2A > Complete this question by entering your answers in the table below. Req 1A Req 1B Req 2A Req 2B Determine the unit product cost. Assume that the company uses variable costing. Unit product cost Complete this question by entering your answers in the table below. Req 1A Req 18 Reg 2 Req 28 Prepare a contribution format income statement for May. Assume that the company uses varioble costing, High Country, Incorporated Variable Costing Income Statement Reg 2A
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