Inc. manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March of 2018 are

Required

1. Present statements of comprehensive income for January, February, and March of 2018 under

(a) Variable costing and

(b) Absorption costing.

2. Explain the difference in opera ting income for January, February, and March under variable costing and absorption costing.

Transcribed Image Text:

February January March Unit data: Beginning inventory 300 300 Production 1,000 800 1,250 Sales 700 800 1,500 Variable costs: $ 900 900 Manufacturing cost per unit produced 900 $ 600 Operating (marketing) cost per unit sold 600 600 Fixed costs: Manufacturing costs $400,000 $400,000 $400,000 Operating (marketing) costs $140,000 $140,000 $140,000 The selling price per unit is $3,000. %24