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In: AccountingHigh Country, Inc., produces and sells many recreationalproducts. The company has just opened a new...High Country, Inc., produces and sells many recreationalproducts. The company has just opened a new plant to produce afolding camp cot that will be marketed throughout the UnitedStates. The following cost and revenue data relate to May, thefirst month of the plant’s operation:Beginninginventory 0Unitsproduced 47,000Unitssold 42,000Selling price per unit $84Selling and administrative expenses:Variable perunit $ 3Fixed (per month) $ 562,000Manufacturing costs:Direct materials cost perunit $ 16Direct labor cost perunit $ 9Variable manufacturing overhead cost per unit $ 1Fixed manufacturing overhead cost (per month) $ 940,000Management is anxious to assess the profitability of the newcamp cot during the month of May.Required:1. Assume that the company uses absorption costing.a. Determine the unit product cost.b. Prepare an income statement for May.2. Assume that the company uses variable costing.a. Determine the unit product cost.b. Prepare a contribution format income statement for May.