1a) Variable Costing

1b) Absorption Costing

2)

Nascar Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and M (Click the icon to view the data.) The selling price per vehicle is $21,000. 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. - X Data Table 1 Requirements Requirement 1. Prepare z Ill answer (a) Prepare April and Me boxes. Enter a "0" for an April May Unit data: 1. Prepare April and May 2017 income statements for Nascar 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. Beginning inventory 100 Production 500 450 Sales 400 520 Variable costs: Print Done $ 9,500 9,500 $ 2,600 2,600 Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs: Manufacturing costs Operating (marketing) costs $ Choose from any list or 2,000,000 $ 550,000 2,000,000 550,000 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 Revenues Cost of goods sold: Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Cost of goods available for sale Deduct ending inventory Adjustment for production-volume variance Cost of goods sold Gross margin Variable operating costs Fixed operating costs Operating income 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. (Abbreviations used: Beg. = Beginning, End. = Ending, Var. = Variable, Mfg = Manufacturing. Complete all answer boxes. Enter a "0" for any zero balance accounts.) Absorption-costing operating income Variable-costing operating income = - Fixed mfg costs in end. inventory . Fixed mfg costs in beg. inventory Nascar Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and M (Click the icon to view the data.) The selling price per vehicle is $21,000. 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. - X Data Table 1 Requirements Requirement 1. Prepare z Ill answer (a) Prepare April and Me boxes. Enter a "0" for an April May Unit data: 1. Prepare April and May 2017 income statements for Nascar 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. Beginning inventory 100 Production 500 450 Sales 400 520 Variable costs: Print Done $ 9,500 9,500 $ 2,600 2,600 Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs: Manufacturing costs Operating (marketing) costs $ Choose from any list or 2,000,000 $ 550,000 2,000,000 550,000 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 Revenues Cost of goods sold: Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Cost of goods available for sale Deduct ending inventory Adjustment for production-volume variance Cost of goods sold Gross margin Variable operating costs Fixed operating costs Operating income 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. (Abbreviations used: Beg. = Beginning, End. = Ending, Var. = Variable, Mfg = Manufacturing. Complete all answer boxes. Enter a "0" for any zero balance accounts.) Absorption-costing operating income Variable-costing operating income = - Fixed mfg costs in end. inventory . Fixed mfg costs in beg. inventory