a)

b)

requirement 2:

INFORMATION:

Race Track 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 vehide is $29,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 600 units. There are no prion, 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 Race Track Motors under (a) variable costing and (b) absorption costing. (a) Prepare April and May 2017 income statements for Race Track Motors under variable costing. Complete the top half of the income statement for each month first, the complete the bottom portion (Complete all answer boxes. Enter a 'o' for any zero balance accounts.) April 2017 May 2017 Choose from any list or enter any number in the input fields and then continue to the next question Save for Later MacBook Pro Race Track 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 $29,000. The budgeted level of production used to calculate the budgeted foxed manufacturing cost per unit is production-volume variance is written off to cost of goods sold in the month in which it occurs. Read the requirements wwwww Choose from any list or enter any number in the input fields and then continue to the next question Save for Later MacBook Pro esc 30 A * # 3 % 5 & 7 2 6 8 W m R T S F G Race Track Motors assembles and sells motor vehicles and uses standard costing. Actual (Click the icon to view the data.) The selling price per vehicle is $29,000. The budgeted level of production used to calculate production-volume variance is written off to cost of goods sold in the month in which it occur Adjustment for production-volume variance Allocated fixed manufacturing costs Beginning inventory Contribution margin Cost of goods available for sale Deduct ending inventory Fixed manufacturing costs Fixed operating costs Gross margin Operating income Revenues Variable cost of goods sold Variable manufacturing costs Variable operating costs Choose from any list or enter any number in the input fields and then continue to the nex Save for Later Read the requirements (b) Prepare April and May 2017 income statements for Race Track Motors under absorption costing. Complete the top half of the income statement for each month first, then complete the bottom portion (Enter a no for any zero balance accounts. Label any variance as favorable (F) or unfavorable (U). If an account does not have a variance, do not select a label) April 2017 May 2017 Choose from any list or enter any number in the input fields and then continue to the next question Save for at MacBook Pro Read the requirements. Choose from any list or enter any number in the input fields and then continue to the next question. Save for Later MacBook Pro and use (Click the icon to view the data.) The selling price per vehicle is $29,000. The budgeted level of p production-volume variance is written off to cost of goods sold in Adjustment for production-volume variance Allocated fixed manufacturing costs Beginning inventory Contribution margin Cost of goods available for sale Deduct ending inventory Fixed manufacturing costs Fixed operating costs Gross margin Operating income Revenues Variable cost of goods sold Variable manufacturing costs Variable operating costs Choose from any list or enter any number in the input fields and t Save for Later Requirement 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable conting and absorption costing, Begin by determining the formula that will highlight the difference between the operating income under each method. The complete the equation for each month. (Abbreviations used: Beg Beginning, End - Ending, Var Variable, My Manufacturing Complete all answer boxes. Entora "O for any zero balance accounts.) Absorption costing Variable-costing operating income operating income - Apr May The diference between absorption and variable costing is due solely to moving into inventories as inventories and out of inventories as they Choose from any list or enter any number in the input fields and then continue to the next question Save for Later Requirement 2. Prepare a numerical reconciliation and explanation of the difference between operating Begin by determining the formula that will highlight the difference between the operating income under ea Var. = Variable, Mfg = Manufacturing. Complete all answer boxes. Enter a "O" for any zero balance accour Absorption-costing Variable-costing operating income operating income Apr May Fixed mfg costs in beg. inventory Fixed mfg costs in end. inventory The difference between absorption and variable costing Fixed operating costs Var. mfg costs in beg, inventory Choose from any list or enter any number in the inpu Var, mfg costs in end. inventory question. Var operating costs Save for Later MacBod SC 8 FI 20 F2 F3 A 2 # 3 4 % 5 6 Q W E R. T americal reconciliation and explanation of the difference between operating income for each month under variable costing arm mula that will highlight the difference between the operating income under each method. Then complete the equation for each acturing. Complete all answer boxes. Enter a "0" for any zero balance accounts.) Variable-costing operating income Fixed mfg costs in beg. inventory Fixed mfg costs in end, inventory sorption and variable costing is due solely to moving Fixed operating costs Var. mfg costs in beg. Inventory ter any number in the input fields and then continue to the next Var.mfg costs in endinventory Var operating costs tories MacBook Pro 20 F2 F3 F4 FB # 3 $ 4 % 5 & 7 2 8 9 W E R. T Y U S D F G equirement 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month un gin by determining the formula that will highlight the difference between the operating income under each method. Then complet 1. = Variable, Mfg = Manufacturing. Complete all answer boxes. Enter a "O" for Absorption-costing Variable costing fixed manufacturing costs operating income operating income fixed operating costs variable manufacturing costs variable operating costs me difference between absorption and variable costing is due solely to moving into inventories as in or oose from any list or enter any number in the input fields and then continue to the next question. Bave for Later MacBook Pro FI 80 FZ F3 F4 # 3 % 2 $ 4 & 7 Q E R. . Y S F G . of the difference between operating income for each month under variable costing and absorption costing. meen the operating income under each method. Then complete the equation for each month. (Abbreviations used: Beg. = Beginning ter a "O" for any zero balance accounts.) y to moving into inventories as inventories and out of inventories as they d then continue to the next question. decrease increase MacBook Pro & 9 0 % 5 6 P Y U 2 T L J H F G Beg. - Beginning, End. = = Ending, as inventories and out of inventories as they decrease increase 1 F12 F11 F10 F8 + II dele o 9 P o Data Table ol of po sold in There a April May Unit data: 0 150 Beginning inventory Production 600 500 Sales 450 610 nd abs Variable costs: xplanat ference er boxes th mon S 9,000 $ 9,000 Manufacturing cost per unit produced Operating(marketing) cost per unit sold 3,200 3,200 Fixed costs: Manufacturing costs Operating (marketing) costs $ 2,400,000 $2,400,000 750,000 750,000 Print s due so Done ande fields and then continue to the next question. MacBook Pro