PRINTER VERSION BACK NEXT Question 4 Blue Mountain Products manufactures and sells a variety of camping goods. Recently, the company opened a new plant to manufacture a lightweight, self-standing tent. Cost and sales data for the first month of operations (June 2020) are as follows: Manufacturing costs Fixed overhead $215,130 Variable overhead $3.20 per tent Direct labour $16.00 per tent Direct material $41.10 per cent Beginning inventory O tents Tents produced 10,100 Tents sold 9,200 Selling and administrative costs Fixed $383,400 Variable $5.00 per tant sold The tent sells for $150. Management is interested in the opening month's results and has asked for an income statement (a) Your answer is correct. Assuming the company uses absorption costing: 1. Calculate the manufacturing cost per unit. (Round answer to 2 decimal places, e.g. 25.75.) Manufacturing cost 81.6 per unit Manufacturing cost 81.6 per unit 2. Prepare an absorption-costing income statement for the month of June 2020. (Round per unit decimal places, e.g. 125.) BLUE MOUNTAIN PRODUCTS Income Statement-Absorption Costing For the Month Ended June 30, 2020 Sales 1380000 Less , Cost of goods sold 750720 > Gross profit 629280 Less - Selling and administrative expenses Variable 46000 Fixed 383400 429400 Net income before tax 199880 SHOW SOLUTION 11.305 NON 18 CES Manufacturing cost 60.3 per unit 2. Prepare a variable-costing income statement for the month of June 2020. (Round per unit c- decimal places, e.g. 125.) BLUE MOUNTAIN PRODUCTS Income Statement-Variable Costing For the Month Ended June 30, 2020 ady. Sales 1380000 Less Variable costs Variable cost of goods sold 750720 Variable selling and administrative expenses 46000 Total variable costs X 796720 Contribution margin 583280 Less Fixed costs 383400 Net Income before tax 199880 11.306 18 A