1.	Prepare April and May 2017 income statements for FastTrack Motors under(a) variable costing and (b) absorption costing.
2.	Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing.

			April 2017				May 2017
Revenues
Variable cost of goods sold:
	Beginning inventory
	Variable manufacturing costs
	Cost of goods available for sale
	Deduct ending inventory
	Variable cost of goods sold
Variable operating costs
Contribution margin
Fixed manufacturing costs
Fixed operating costs
Operating income

same table for absorption costing.

April May 0 450 425 Unit data Beginning inventory Production Sales Variable costs Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs Manufacturing costs Operating (marketing) costs $ 9,500 $ 2,800 9,500 2,800 $ 2,250,000 $ 625,000 2,250,000 625,000 Cool Car Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2017 are as follows: (Click the icon to view the data.) The selling price per vehicle is $23,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs. Read the requirements. Requirement 1. Prepare April and May 2017 income statements for Cool Car Motors under (a) variable costing and (b) absorption costing. (a) Prepare April and May 2017 income statements for Cool Car Motors under variable costing. Complete the top half of the income statement for each month first, then complete the bottom portion. (Complete all answer boxes. Enter a "0" for any zero balance accounts.)