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i need help with req 2B, the last problem but i posted the 1st ones for background info to help. Complete High Country, Inc., produces
i need help with req 2B, the last problem but i posted the 1st ones for background info to help. Complete High Country, Inc., 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: 43,000 38,000 80 $ 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) 4 $ 556,000 $ 15 $ 8 $ 1 $ 688,000 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. Determine the unit product cost. b. Prepare an income statement for May. 2. Assume that the company uses variable costing. a. Determine the unit product cost. b. Prepare a contribution format income statement for May. SHA af 3 Next > Complete this question by entering your answers in the table below. Reg 1A Req 1B Req 2A Req 2B Determine the unit product cost. Assume that the company uses absorption costing. Unit product cost $ 40 2 of 3 Prev # Req 1A Req 1B Req 2A Req 2B Prepare an income statement for May. Assume that the company High Country, Inc. Absorption Costing Income Statement $ Sales 3,040,000 Cost of goods sold +1,520,000 Gross margin 1,520,000 Selling and administrative 708,000 expenses $ 812,000 Net operating income
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