Problem 6-20 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements; Explanation of Difference in Net Operating Income [LO6-1, L06-2, L06-3] 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. 0 50,000 45,000 $ 82 $ 4 $ 564,000 $ 17 $ 7 $ 3 $ 1,000,000 Complete this question by entering your answers in the table below. Req 1A Req 18 Req 2A Req 28 Determine the camp cot's unit product cost. Assume the company uses absorption costing. Unit product cost
Problem 6-20 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements; Explanation of Difference in Net Operating Income [LO6-1, L06-2, L06-3] 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. 0 50,000 45,000 $ 82 $ 4 $ 564,000 $ 17 $ 7 $ 3 $ 1,000,000 Complete this question by entering your answers in the table below. Req 1A Req 18 Req 2A Req 28 Determine the camp cot's unit product cost. Assume the company uses absorption costing. Unit product cost
Chapter1: Financial Statements And Business Decisions
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![Problem 6-20 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements;
Explanation of Difference in Net Operating Income [LO6-1, L06-2, L06-3]
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.
0
50,000
45,000
$ 82
$ 4
$ 564,000
$ 17
$ 7
$ 3
$ 1,000,000
Complete this question by entering your answers in the table below.
Req 1A
Req 18
Req 2A
Req 28
Determine the camp cot's unit product cost. Assume the company uses absorption costing.
Unit product cost
<Req 1A
Req 1B >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F31a83ff4-2c0c-452c-bdaa-52bbf82ab393%2Fb61eee30-eed0-457d-b257-d290b34bf524%2F24ob0iw_processed.jpeg&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, L06-2, L06-3]
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.
0
50,000
45,000
$ 82
$ 4
$ 564,000
$ 17
$ 7
$ 3
$ 1,000,000
Complete this question by entering your answers in the table below.
Req 1A
Req 18
Req 2A
Req 28
Determine the camp cot's unit product cost. Assume the company uses absorption costing.
Unit product cost
<Req 1A
Req 1B >
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