Item5

Item 5

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 plants operation:

Beginning inventory		0
Units produced		42,000
Units sold		37,000
Selling price per unit	$	78
Selling and administrative expenses:
Variable per unit	$	3
Fixed (per month)	$	568,000
Manufacturing costs:
Direct materials cost per unit	$	17
Direct labor cost per unit	$	6
Variable manufacturing overhead cost per unit	$	2
Fixed manufacturing overhead cost (per month)	$	672,000

1.Prepare an income statement for May.

2.Prepare a contribution format income statement for May.