Problem $6-20($Algo$)$ Variable and Absorption Costing Unit Product Costs and Income Statements;

Explanation of Difference in Net Operating Income $[$LO$6-1,$ LO$6-2,$ LO$6-3]$

High Country, Incorporated, produces and sells many recreational products. The company 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:

Required:

Assume the company uses absorption costing.

a$.$ Calculate the camp cot$\text{'}$s unit product cost.

b$.$ Prepare an income statement for May.

Assume the company uses variable costing.

a$.$ Calculate the camp cot$\text{'}$s unit product cost.

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

Complete this question by entering your answers in the table below.

Determine the camp cot$\text{'}$s unit product cost. Assume the company uses absorption costing.

Unit product costComplete this question by entering your answers in the table below.

Determine the camp cot$\text{'}$s unit product cost. Assume the company uses variable costing.

Complete this question by entering your answers in the table below.

Prepare a contribution format income statement for May. Assume the company uses variable costing.