PRUNTER VERSION HACK NEXT Question 4 Blue Mountain Products manufactures and sells a variety of camping goods. Recently, the company opened a new plant to manufacture a lightweight, self-standing tent. Cost and sales data for the first month of operations (June 2020) are as follows: Manufacturing costs Fixed overhead $230,040 Variable overhead $3.10 per tent Direct labour $15.90 per tent Direct material $40.40 per tent Beginning inventory O tents Tents produced 10,800 Tents sold 8,800 Selling and administrative costs Feed $391,800 Variable $6.00 per tent sold The tant sells for $149. Management is interested in the opening months results and has asked for an income statement (a) Your answer is correct. Assuming the company uses absorption costing 1. Calculate the manufacturing cost per unit. (Round answer to 2 decimal places, e. 25.750 Manufacturing cott 10.30 per unit 2. Prepare an absorption-costing income statement for the month of June 2020. (Round per unit places, e.g. 125.) BLUE MOUNTAIN PRODUCTS Income Statement-Absorption Costing For the Month Ended June 30, 2020 Sales 1,311,200 Less Cost of goods sold 710,160 Gross profit 601,040 Less Selling and administrative expenses Variable 52,800 Fixed 391,800 S 444,600 Net Income before tax 156,440 RCES Assuming the company uses variable costing: 1. Calculate the manufacturing cost per unit. (Round answer to 2 decimal places, e.g. 25.75.) Manufacturing cost per unit 2. Prepare a variable-costing income statement for the month of June 2020. (Round per unit calculations to 2 places, e.g. 125.) Study BLUE MOUNTAIN PRODUCTS Income Statement-Variable Costing