Problem 6-20A Variable and Absorption Costing Unit Product Costs and Income Statements; Explanation of Difference in Net Operating Income [Lo6-1, LO6-2, LO6-3] 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 plant's operation: Beginning inventory 49,000 Units produced 44.000 Units sold Selling price per unit Selling and administrative expenses Variable per unit $565.000 Fixed per month Manufacturing costs: $17 Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead cost per month $980,000 Management is anxious to see how profitable the new camp cot will be and has asked that an income statement be prepared for May. Required: 1. Assume that the company uses absorption costing. a. Determine the unit product cost. Unit product cost b Prepare an income statement for May. High Country, Inc. sorption costing Income statement