Problem 6-20 (Algo) Variable and Absorption Costing Unit Produ Explanation of Difference in Net Operating Income (LO6-1, L06-2, LO6-3) 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: 0 36,000 30 lleginn inventory Units produced Units sold Selling price per unit selling and administrative expenses Variable per unit Fixed (per month Manufacturing costs Direct materials cast per un Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead cost per month $ $ 565,000 $ 16 $ 6 $ 5 720,000 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 Calculate the unit product cost. b. Prepare an income statement for May 2. Assume that the company uses variable costing a. Calculate the unit product cost b. Prepare a contribution format income statement for May Complete this question by entering your answers in the table below. dixo assene Required: 1. Assume that the company uses absorption costing. a. Calculate the unit product cost. b. Prepare an income statement for May. 2. Assume that the company uses variable costing. a. Calculate the unit product cost. b. Prepare a contribution format income statement for May. Complete this question by entering your answers in the table below. Reg 1A Reg 18 Red 2A Reg 28 Determine the unit product cost. Assume that the company uses absorption costing. Unit product cost Real Reg 1B > Complete this question by entering your answers in the table below. Red SA Reg 10 Reg 2 Reg 20 Prepare an income statement for May. Assume that the company uses absorption costing High Country, Inc Absorption Costing Income Statement Soins Cost of goods sold Gross margin Selling and administrative expenses Not operating income 5 0 0 Complete this question by entering your answers in the table below. Red 1A Red 15 Reg-2 Reg 215 Determine the unit product cost. Assume that the company uses variable costing Line product cost Reg 16 Reg 20 > Complete this question by entering your answers in the table below. Req 1A Reg 1B Reg 2A Req 2B Prepare a contribution format Income statement for May. Assume that the company uses variable costing. nces High Country, Inc. Variable Costing Income Statement Sales Variable expenses Vanable cost of goods sold Variable selling expense 0 0 Contribution margin Fixed expenses Fixed manufacturing overhead Fixed selling and administrative expense 0 $ 0 Net operating income
