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 $45,000$

Units sold $\backslash 40,000$

Selling price per unit $ $83$

Selling and administrative expenses:

Variable per unit $ $3$

Fixed $($per month$)$ $ $561,000$

Manufacturing costs:

Direct materials cost per unit $ $15$

Direct labor cost per unit $ $9$

Variable manufacturing overhead cost per unit $ $1$

Fixed manufacturing overhead cost $($per month$)$ $$765,000$

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$.$ Calculate the unit product cost.

b$.$ Prepare an income statement for May.

Assume that the company uses variable costing.

a$.$ Calculate the unit product cost.

b$.$ Prepare a contribution format income statement for May.