Question: Can you help me solve the contribution format income statement for May chart? Item 1 1 0 points ReferencesItem 1 High Country, Inc., produces and
Can you help me solve the contribution format income statement for May chart?
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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 plants 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 $
Management is anxious to assess the profitability of the new camp cot during the month of May.
Required:
Assume that the company uses absorption costing.
a Determine the unit product cost.
b Prepare an income statement for May.
Assume that the company uses variable costing.
a Determine the unit product cost.
b Prepare a contribution format income statement for May.
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