High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:           Beginning inventory   0   Units produced   42,000   Units sold   37,000   Selling price per unit   $76   Selling and administrative expenses:       Variable per unit   $3   Fixed (per month) $ 557,000   Manufacturing costs:       Direct materials cost per unit   $16   Direct labor cost per unit   $9   Variable manufacturing overhead cost per unit   $1   Fixed manufacturing overhead cost (per month) $ 672,000       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. a. Determine the unit product cost.     Unit product cost       b. Prepare an income statement for May.     High Country, Inc. Absorption Costing Income Statement                         2. Assume that the company uses variable costing. a. Determine the unit product cost.     Unit product cost       b. Prepare a contribution format income statement for May.     High Country, Inc. Variable Costing Income Statement       Variable expenses:                                   Fixed expenses:

High Country, Incorporated, produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant's operation: Beginning inventory Units produced Units sold Selling price per unit Selling and administrative expenses: Variable per unit Fixed (per month) Manufacturing costs: Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead cost (per month) Required: 1. Assume that the company uses absorption costing. a. Calculate the unit product cost. b. Prepare an income statement for May. 0 2. Assume that the company uses variable costing. a. Calculate the unit product cost. b. Prepare a contribution format income statement for May. 40,000 35,000 $81 $4 $ 562,000 Management is anxious to assess the profitability of the new camp cot during the…

Blossom Motors is a division of Blossom Products Corporation. The division manufactures and sells an electric switch used in a wide variety of applications. During the coming year, it expects to sell 180,000 units for $8.00 per unit. Donna Clark is the division manager. She is considering producing either 180,000 or 280,000 units during the period. Other information is as follows: Beginning inventory Expected sales in units Selling price per unit Variable manufacturing cost per unit Fixed manufacturing cost (total) Fixed manufacturing overhead costs per unit Based on 180,000 units Based on 280,000 units Manufacturing cost per unit Based on 180,000 units (a) Based on 280,000 units Variable selling and administrative expenses Fixed selling and administrative expenses (total) - Your answer is partially correct. Units produced Units sold (b) Sales Less Prepare an absorption-costing income statement, with one column showing the results if 180,000 units are produced and one column showing…

Royal Lawncare Company produces and sells two packaged products- Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow Selling price per unit $ 11.00 $ 37.00 Variable expenses per unit $ 2.70 $ 10.00 Traceable fixed expenses per year. $ 134,000 $ 31,000 Last year the company produced and sold 39, 500 units of Weedban and 15, 500 units of Greengrow. Its annual common fixed expenses are $98,000. Required: Prepare a contribution format income statement segmented by product lines.