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Wiengot Antennas, Inc., produces and sells a unique type of TV antenna. The company has just opened a new plant to manufacture the antenna, and

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Wiengot Antennas, Inc., produces and sells a unique type of TV antenna. The company has just opened a new plant to manufacture the antenna, and the following cost and revenue data have been provided for the first month of the plant's operation. Beginning inventory Units produced Units sold 36,000 31,000 $77 Selling price per unit Selling and administrative expenses: Variable per unit Fixed (total) $2 $ 557,000 Manufacturing costs Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead cost (total) $15 $9 $1 $ 684,000 new antenna is unique in design, management is anxious to see how profitable it will be and has asked that an income statement be prepared for the month. Required 1. Assume that the company uses absorption costing. a. Determine the unit product cost. (Omit the "S" sign in your response.) Unit product cost b. Prepare an income statement for the month. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "s"sign in your response.) Absorption Costing Income Statement S 2387000 1364000 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income (loss) 1023000 619000 404000 Net operating income (loss) $404000 2. Assume that the company uses variable costing. a. Determine the unit product cost. (Omit the "$" sign in your response.) Unit product cost 25 b. Prepare a contribution format income statement for the month. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.) Variable Costing Income Statement Sales Variable expenses: s 2387000 Variable cost of goods sold Variable selling and administrative expenses Contribution margin Fixed expenses: 1550000 Fixed manufacturing overhead Fixed selling and administrative expenses 684000 557000 1241000 s309000 Net operating income (loss)

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