selling price per unit is $80

PROBLEM 8-12 Variable and Abserption Costing Unit Product Cost and Income Statemento; Explanation of Difference in Operating Income [9 LO1, [32, LO2, 3 2. LO3] Coverall Inc. prodaces and sells a unique type of case for a standard-size tablet computer that is guaranteed waterproof but ttill ations for regalar fasctionality of the tablet. The company has just opened a new plant to manufacture these cases, and the fotlowiog cost and revenue data have been prowided for the first month of the plant's operatioa in the form of a worksheet Since the new case is unique in design, nsanagement is anxious to see how prostable it will be and has asked that an income statement be prepared for the month. Requincas 1. Assume that the company uses absorption costing. a. Determine the unit product cost b. Prepare an income statement for the mosth. 2. Assume that the company uses variable costing. a. Determine the unit product cost. b. Prepare a contribution format income statement for the month. 3. Explain the reason for any difference in the ending iaventory balasces under the two conting methods and the impact of thas dufference on reported operating ficome. Coverall Inc produces and sells a unique type of case for a standard-size tablet computer that is guaranteed waterproof but still allows for regular functionality of the tablet. The company has just opened a new plant to manufacture these cases, and the following cost and reveane data have been proxided for the first month of the plant's operation in the form of a worksheet Since the new case is unique in design, management is anxious to see how probtable it will be and has asked that an income statement be prepared for the month. Requined: 1. Assume that the company uses absorption costing a. Determine the unit product cost. b. Prepare an income statement for the moath. 2. Assume that the company uses variable costing- a. Determine the unit product cost. b. Prepare a contribution format income statement for the month. 3. Explain the reason for any difference in the ending inveatory balances under the two conting methods and the impact of this difference on reported operating income