fbpx

Accounting Assignment | College Homework Help

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:College Homework Help

Don't use plagiarized sources. Get Your Assignment on
Accounting Assignment | College Homework Help
Just from $13/Page
Order Now
Beginning inventory 0
Units produced 49,000
Units sold 44,000
Selling price per unit $ 80
Selling and administrative expenses:
Variable per unit $ 3
Fixed (per month) $ 563,000
Manufacturing costs:
Direct materials cost per unit $ 14
Direct labor cost per unit $ 7
Variable manufacturing overhead cost per unit $ 3
Fixed manufacturing overhead cost (per month) $ 931,000

Management is anxious to assess the profitability of the new camp cot during the month of May.

Required:

1. Assume that the company uses absorption costing.

a. Determine the unit product cost.

b. Prepare an income statement for May.

2. Assume that the company uses variable costing.

a. Determine the unit product cost.

b. Prepare a contribution format income statement for May. Get Accounting Homework Help today

Calculate your paper price

Pages(550 words)

Approximate price:-