111111111111111111

Champion Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2018 are provided. (Click 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 rate variances. Any production-volume variance is written off to COGS in the month in which it occurs. Required 1. Prepare April and May 2018 statements of comprehensive income for Champion 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. Requirement 1a. Prepare April and May 2018 statements of comprehensive income for Champion Motors under variable costing. i Data Complete the top half of the statement of comprehensive income for each month first, and then complete the bottom portion. (Enter a "0" for any zero balance accou April 2018 May 2018 April May Unit data: Beginning inventory 0 50 Production 500 475 Sales 450 475 Variable costs: Less Manufacturing cost per unit produced $ 11,000 $ 11,000 Operating (marketing) cost per unit sold 2,800 2,800 Fixed costs: Manufacturing costs $ 2,000,000 $ 2,000,000 Operating (marketing) costs 675,000 675,000Less: Requirement 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing. Begin by determining the formula that will highlight the difference between the operating income under each method. Then complete the equation for each month. (Enter an amount in each input cell.) Absorption-costing Variable-costing operating income operating incomeApr. May The difference between absorption and variable costing is due solely to moving into inventories as inventories and out of inventories as theyRequirement 1b. Prepare April and May 2018 statements of comprehensive income for Champion Motors under absorption costing. Complete the top half of the statement of comprehensive income for each month first, and then complete the bottom portion. (Enter a "0" for any zero balance accounts. If an account does not have a variance, do not select a label.) April 2018 May 2018