High Country, Incorporated, produces and sells many recreational products. The company just opened a new plant to produce a olding 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: Kc 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) tequired: 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. 50,000 45,000 $82 $ 564,000 $ 17 $7 $3 $ 1,000,000
High Country, Incorporated, produces and sells many recreational products. The company just opened a new plant to produce a olding 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: Kc 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) tequired: 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. 50,000 45,000 $82 $ 564,000 $ 17 $7 $3 $ 1,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Complete this question by entering your answers in the table below.
Req 1A
Req 1A
Req 18
Prepare an income statement for May. Assume the company uses absorption costing.
High Country, Incorporated
Absorption Costing Income Statement
Unit product cost
Req 2A
Req 1B
Req 1A
Complete this question by entering your answers in the table below.
Req ZA
Req 1B
Req 2B
$
< Req 1A
Req 2A
Req 2B
Determine the camp cot's unit product cost. Assume the company uses variable costing.
< Req 1B
0
0
Complete this question by entering your answers in the table below.
Req 2B
Req 2A >
< Req 2A
Req 2B >
Prepare a contribution format income statement for May. Assume the company uses variable costing.
High Country, Incorporated
Variable Costing Income Statement
$
0
0
0
0
Req 2B >
![Problem 6-20 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements;
Explanation of Difference in Net Operating Income [LO6-1, LO6-2, LO6-3]
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.
Req 1A
Complete this question by entering your answers in the table below.
Req 18
0
50,000
45,000
$ 82
Req ZA
Determine the camp cot's unit product cost. Assume the company uses absorption costing.
Unit product cost
Req 28
$4
$ 564,000
Req 1A
$ 17
$7
$3
$ 1,000,000
Req 1B >
||](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fea366306-f9a6-4b98-a79b-f328d41f4057%2F8ae38708-f63e-4de9-956c-9bb055882211%2Fa38wdv_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 6-20 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements;
Explanation of Difference in Net Operating Income [LO6-1, LO6-2, LO6-3]
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.
Req 1A
Complete this question by entering your answers in the table below.
Req 18
0
50,000
45,000
$ 82
Req ZA
Determine the camp cot's unit product cost. Assume the company uses absorption costing.
Unit product cost
Req 28
$4
$ 564,000
Req 1A
$ 17
$7
$3
$ 1,000,000
Req 1B >
||
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