Accounting 285 Team Exercise 3 (Key) (Chapters 5-6) Chapter Problem 1 Smores Co. produces and sells many camping products. The company has just opened a new plant to produce a cushy sleeping bag 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 (total) Manufacturing costs Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead cost (total 0 47,000 42,000 $81 $2 561,000 $17 $8 $4 $846,000 Management is anxious to see how profitable the new camp cot will be and has asked that an income statement be prepared for May. Assume that the company uses absorption costing. 1) What is the unit product cost? 2) Prepare an income statement for May