Question

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 Units produced 49,000 44,000 $79 Units solod 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 $567,000 $17 $833,000 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. Absorption Costing Income Statement

Answer 1

Direet Lobu 9 4 94 6 9 34 76 $30O 217 De Maten Diee Loto $ 21

Vanalte, Cost Good Sold 9117 Guno $833un P 567w I1 O0Oo