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 Variable and Absorption Costing Assignment | Top Universities

Variable and Absorption Costing Unit Product Costs and Income Statements; Explanation of Difference in Net Operating Income (LO6-1, LO6-2, LO6-3) 1.42 points 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 related to May, the first month of the plant's operation: eBook 42,000 37,000 Print 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 cont (per month) $ 3 $ 557,000 References 18 $ 1 $ 672.000 Management is anxious to assess the profitability of the new camp cot during the month of May.

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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 Complete this question by entering your answers in the table below. Req 1A Req 1B Req 2A Req 2B Determine the unit product cost. Assume that the company uses absorption costing. Unit product cost Req1A Req 1B > Complete this question by entering your answers in the table below. Reg 1A Req 1B Req 2A Req 2B Prepare an income statement for May. Assume that the company uses absorption costing. High Country, Inc. Absorption Costing Income Statement Req 1A Req2A > Complete this question by entering your answers in the table below. Req 1A Req 1B Req 2A Req 2B Determine the unit product cost. Assume that the company uses variable costing. Unit product cost < Reg 1B Req 2B> Complete this question by entering your answers in the table below. Req 1A Req 1B Req 2A Req 2B Prepare a contribution format income statement for May. Assume that the company uses variable costing. High Country, Inc. Variable Costing Income Statement. Get Accounting Homework Help Today

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