High Country, Incorporated, produces and sells many recreational products. The company 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	39,000
Units sold	34,000
Selling price per unit	$ 79
Selling and administrative expenses:
Variable per unit	$ 3
Fixed (per month)	$ 556,000
Manufacturing costs:
Direct materials cost per unit	$ 15
Direct labor cost per unit	$ 7
Variable manufacturing overhead cost per unit	$ 2
Fixed manufacturing overhead cost (per month)	$ 741,000

Required:

1. Assume the company uses absorption costing.
   1. Calculate the camp cot's unit product cost.
   2. Prepare an income statement for May.
2. Assume the company uses variable costing.
   1. Calculate the camp cot's unit product cost.
   2. Prepare a contribution format income statement for May.