9-18 Variable and absorption costing, explaining operating-income differences. BigScreen Corporation manufactures and sells 50-inch television sets...

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9-18 Variable and absorption costing, explaining operating-income differences. BigScreen Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March of 2012 are as follows: January February March Unit data Beginning inventory Production Sales 0 300 300 1,000 800 1,250 700 800 1,500 Variable costs Manufacturing cost per unit produced $ 900 $ 900 $ 900 Operating (marketing) cost per unit sold $ 600 $ 600 $ 600 Fixed costs Manufacturing costs Operating (marketing) costs $400,000 $140,000 $400,000 $400,000 $140,000 $140,000 The selling price per unit is $2,500. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,000 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. 1. Prepare income statements for BigScreen in January, February, and March of 2012 under (a) variable costing and (b) absorption costing. 2. Explain the difference in operating income for January, February, and March under variable costing and shenation enction 9-18 Variable and absorption costing, explaining operating-income differences. BigScreen Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March of 2012 are as follows: January February March Unit data Beginning inventory Production Sales 0 300 300 1,000 800 1,250 700 800 1,500 Variable costs Manufacturing cost per unit produced $ 900 $ 900 $ 900 Operating (marketing) cost per unit sold $ 600 $ 600 $ 600 Fixed costs Manufacturing costs Operating (marketing) costs $400,000 $140,000 $400,000 $400,000 $140,000 $140,000 The selling price per unit is $2,500. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,000 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. 1. Prepare income statements for BigScreen in January, February, and March of 2012 under (a) variable costing and (b) absorption costing. 2. Explain the difference in operating income for January, February, and March under variable costing and shenation enction