Required:

1. Assume the company uses absorption costing.
   1. Calculate the camp cot's unit product cost.
   2. Prepare an income statement for May.
2. Assume the company uses variable costing.
   1. Calculate the camp cot's unit product cost.
   2. Prepare a contribution format income statement for May.

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: 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. Complete this question by entering your answers in the table below. Determine the camp cot's unit product cost. Assume the company uses absorption costing. Complete this question by entering your answers in the table below. Prepare an income statement for May. Assume the company uses absorption costing. Complete this question by entering your answers in the table below. Determine the camp cot's unit product cost. Assume the company uses variable costing. Complete this question by entering your answers in the table below. Prepare a contribution format income statement for May. Assume the company uses variable costing