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:

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.

\begin{tabular}{lr} Beginning inventory & 0 \\ Units produced & 38,000 \\ Units sold & 33,000 \\ Selling price per unit & $76 \\ Selling and administrative expenses: & $3 \\ Variable per unit & $561,000 \\ Fixed (per month) & $15 \\ Manufacturing costs: & $9 \\ Direct materials cost per unit & $4 \\ Direct labor cost per unit & $646,000 \end{tabular} Determine the camp cot's unit product cost. Assume the company uses absorption costing. Prepare an income statement for May. Assume the company uses absorption costing. Determine the camp cot's unit product cost. Assume the company uses variable costing. Req 1A Req 1B Req 2A Req 2B Prepare a contribution format income statement for May. Assume the company uses variable costing