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 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) $ $ $ maiste S 0 50,000 45,000 79 560,000 16 8 2 $1,000,000 Management is anxious to assess the profitability of the new camp cot during the month of May. Required: 1. Assume that the company uses absorption costing. a. Calculate the unit product cost. b. Prepare an income statement for May 2. Assume that the company uses variable costing. a. Calculate the unit product cost. b. Prepare a contribution format income statement for May.

JK Company, located in Indonesia, specializes in producing sets of wooden patio furniture consisting of a table and four chairs. The company is currently operating at 80% of its full capacity of 5,000 sets per quarter. Quarterly cost data at this level of operations follow: Factory labour, direct Advertising Factory supervision Property taxes, factory building Sales commissions Insurance, factory Depreciation, office equipment Lease cost, factory equipment Indirect materials, factory Depreciation, factory building General office supplies (billing) General office salaries Direct materials used (wood, bolts, etc.) Utilities, factory $360,000 90,000 100,000 15,500 180,000 6,500 26,000 18,000 28,000 23,000 9,000 85,000 224,000 55,000 Required: 1. Enter each cost item on your answer sheet, placing the dollar amount of each cost item under the appropriate headings. As examples, this has been done already for the first two items in the preceding list. Note that each cost item is classified in…

Feed 'N Grow Co. manufactures fertilizer for farmers in the prairies. It specialises in fertilizer that helps crops grow during dry seasons. The income statement presented below shows the operating results for the fiscal year just ended. Feed 'N Grow had sales of 1,800 tonnes of product during that year. The maximum output under the existing manufacturing facilities at Feed 'N Grow is 4,800 tonnes. Feed 'N Grow Co. Revenues Variable Costs: Income Statement For the year ended June 30, Year 6 Direct materials Direct labour Sales commissions Maintenance expenses Administration expenses Total variable costs Fixed costs: Amortization - Factory equipment Marketing expenses Administrators' salaries Other Total fixed costs Operating income before income taxes Income taxes Net Income 225,000 75,000 55,000 44,000 33,000 125,000 90,000 60,000 25,350 $1,080,000 432,000 300,350 347,650 69,530 $ 278,120 Required: a) If the sales volume is estimated to increase by 600 tonnes for next year, and if the…

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 0 Units produced 49,000 Units sold 44,000 Selling price per unit $ 84 Selling and administrative expenses:   Variable per unit $ 4 Fixed (per month) $ 561,000 Manufacturing costs:   Direct materials cost per unit $ 15 Direct labor cost per unit $ 6 Variable manufacturing overhead cost per unit $ 3 Fixed manufacturing overhead cost (per month) $ 735,000   Management is anxious to assess the profitability of the new camp cot during the month of May.   Required: 1. Assume that the company uses absorption costing. a. Calculate the unit product cost. b. Prepare an income statement for May. 2. Assume that the company uses variable costing. a. Calculate the…