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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 camp cot that will
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 plants 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 $ Direct labor cost per unit $ Variable manufacturing overhead cost per unit $ Fixed manufacturing overhead cost per month $ Management is anxious to assess the profitability of the new camp cot during the month of May. Required: Assume that the company uses absorption costing. a Calculate the unit product cost. b Prepare an income statement for May. Assume that the company uses variable costing. a Calculate the unit product cost. b Prepare a contribution format income statement for May.
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 plants 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 $
Direct labor cost per unit $
Variable manufacturing overhead cost per unit $
Fixed manufacturing overhead cost per month $
Management is anxious to assess the profitability of the new camp cot during the month of May.
Required:
Assume that the company uses absorption costing.
a Calculate the unit product cost.
b Prepare an income statement for May.
Assume that the company uses variable costing.
a Calculate the unit product cost.
b Prepare a contribution format income statement for May.
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