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High Country, Incorporated, produces and sells many recreational products. The company 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 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 cost (per month) Required: 1. Assume the company uses absorption costing. a. Calculate the camp cot's unit product cost. b. Prepare an income statement for May. 2. Assume the company uses variable costing. a. Calculate the camp cot's unit product cost. b. Prepare a contribution format income statement for May. 0 46,000 41,000 $ 76 $ 3 $ 557,000 $ 16 $8 $ 4 $ 874,000

High Country, Incorporated, produces and sells many recreational products. The company 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 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 cost (per month) Required: 1. Assume the company uses absorption costing. a. Calculate the camp cot's unit product cost. b. Prepare an income statement for May. 2. Assume the company uses variable costing. a. Calculate the camp cot's unit product cost. b. Prepare a contribution format income statement for May. 0 46,000 41,000 $ 76 $ 3 $ 557,000 $ 16 $8 $ 4 $ 874,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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High Country, Incorporated, produces and sells many recreational products. The company 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 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 cost (per month) Required: 1. Assume the company uses absorption costing. a. Calculate the camp cot's unit product cost. b. Prepare an income statement for May. 2. Assume the company uses variable costing. a. Calculate the camp cot's unit product cost. b. Prepare a contribution format income statement for May. 0 46,000 41,000 $ 76 $ 3 $ 557,000 $ 16 $ 8 $4 $ 874,000
Transcribed Image Text:High Country, Incorporated, produces and sells many recreational products. The company 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 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 cost (per month) Required: 1. Assume the company uses absorption costing. a. Calculate the camp cot's unit product cost. b. Prepare an income statement for May. 2. Assume the company uses variable costing. a. Calculate the camp cot's unit product cost. b. Prepare a contribution format income statement for May. 0 46,000 41,000 $ 76 $ 3 $ 557,000 $ 16 $ 8 $4 $ 874,000
Req 1A Unit product cost Req 1A Determine the camp cot's unit product cost. Assume the company uses absorption costing. Req 1B Req 1A Req 1B Unit product cost Req 2A Req 1A Req 1B Req 2A Prepare an income statement for May. Assume the company uses absorption costing. High Country, Incorporated Absorption Costing Income Statement Req 2B Req 1B Complete this question by entering your answers in the table below. Req 2A < Req 1A Req 2B Req 2A < Req 1A Determine the camp cot's unit product cost. Assume the company uses variable costing. Req 2B Req 1B < Req 1B Req 2A > Complete this question by entering your answers in the table below. Req 2B Req 2B > Prepare a contribution format income statement for May. Assume the company uses variable costing. High Country, Incorporated Variable Costing Income Statement
Transcribed Image Text:Req 1A Unit product cost Req 1A Determine the camp cot's unit product cost. Assume the company uses absorption costing. Req 1B Req 1A Req 1B Unit product cost Req 2A Req 1A Req 1B Req 2A Prepare an income statement for May. Assume the company uses absorption costing. High Country, Incorporated Absorption Costing Income Statement Req 2B Req 1B Complete this question by entering your answers in the table below. Req 2A < Req 1A Req 2B Req 2A < Req 1A Determine the camp cot's unit product cost. Assume the company uses variable costing. Req 2B Req 1B < Req 1B Req 2A > Complete this question by entering your answers in the table below. Req 2B Req 2B > Prepare a contribution format income statement for May. Assume the company uses variable costing. High Country, Incorporated Variable Costing Income Statement
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