QUESTION 1 TehnoHigh LLC manufactures smart tablets in Los Angeles, USA that is sold for $100 per unit in two markets; USA and Canada. The company has just opened a new plant that will be marketed throughout Canada. The following cost and revenue data relate to May, the first month of the plant's operation: Units Sold 35,000 units Units Produced 40,000 units Manufacturing Cost per unit: Direct Materials $75 Direct Labor $50 Variable Manufacturing Overhead $20 Fixed manufacturing Overhead $300,000 Selling and Administrative Expenses: Fored for the year $ 200.000 Variable expenses per unit $15 Management is anxious to see how profitable the new camp cot will be and has asked that an income statement be prepared for May. Required: 1- Assume that the company uses absorption costing. Determine the unit product cost. Prepare an income statement for May. QUESTION 2 2- Assume that the company uses variable costing. Determine the unit product cost. Prepare a contribution format income statement for May. TTT Arial 3 (12pt) T 3 55, QUESTION 3 3. Explain the reason for any difference in the ending Inventory balances under the two costing methods and the impact of this difference on reported net operating income. TTT Arial : 3(1201) TEE