Problem $6-20($Algo$)$ Variable and Absorption Costing Unit Product Costs and Income Statements; Explanation of Difference in Net Operating Income $[$L$06-1,$ 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:

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$)$

$$569,000$

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.