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 plants operation.

Beginning inventory		0
Units produced		50,000
Units sold		45,000
Selling price per unit		$85
Selling and administrative expenses:
Variable per unit		$3
Fixed (total)	$	560,000
Manufacturing costs
Direct materials cost per unit		$15
Direct labor cost per unit		$8
Variable manufacturing overhead cost per unit		$4
Fixed manufacturing overhead cost (total)	$	1,000,000

Because the 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 "$" 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 "$" sign in your response.)

Absorption Costing Income Statement
(Click to select) Gross margin Cost of goods manufactured Net operating income (loss) Selling and administrative expenses Sales	$
(Click to select) Gross margin Selling and administrative expenses Net operating income (loss) Cost of goods sold Sales
(Click to select) Selling and administrative expenses Sales Gross margin Net operating income (loss) Cost of goods sold
(Click to select) Sales Selling and administrative expenses Net operating income (loss) Cost of goods sold Gross margin
(Click to select) Gross margin Net operating income (loss) Cost of goods sold Selling and administrative expenses Sales	$

2.	Assume that the company uses variable costing.

a.	Determine the unit product cost. (Omit the "$" sign in your response.)

Unit product cost

$

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
(Click to select) Variable cost of goods sold Net operating income (loss) Fixed selling and administrative expenses Fixed manufacturing overhead Sales Contribution margin Variable selling and administrative expenses		$
Variable expenses:
(Click to select) Variable cost of goods sold Contribution margin Net operating income (loss) Variable selling and administrative expenses Fixed manufacturing overhead Sales Fixed selling and administrative expenses	$
(Click to select) Sales Variable selling and administrative expenses Variable cost of goods sold Fixed selling and administrative expenses Fixed manufacturing overhead Contribution margin Net operating income (loss)
(Click to select) Contribution margin Variable cost of goods sold Fixed selling and administrative expenses Variable selling and administrative expenses Sales Fixed manufacturing overhead Net operating income (loss)
Fixed expenses:
(Click to select) Contribution margin Fixed selling and administrative expenses Sales Variable selling and administrative expenses Net operating income (loss) Variable cost of goods sold Fixed manufacturing overhead
(Click to select) Variable cost of goods sold Fixed selling and administrative expenses Contribution margin Sales Net operating income (loss) Fixed manufacturing overhead Variable selling and administrative expenses
(Click to select) Sales Contribution margin Fixed manufacturing overhead Variable cost of goods sold Net operating income (loss) Variable selling and administrative expenses Fixed selling and administrative expenses		$