Accelerate Mators assembles and sells mator vehicles and uses standard costing. Actual dala relating to April and May 2017 are as follows: Click the icon to view the data) The selling price per vetide is $22,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 600 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 Accelerale Molors under (a) variable casting and (b) absorption cosling (a) Prepare April and May 2017 income statements for Accelerate 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 and for any zero balance accounts.) April 2017 May 2017 A Data Table April May Unit data: Beginning inventory 0 150 600 550 450 670 $ Production Sales Variable costs: Manufacturing cost per unit produced Operating marketing) cost per unit sold Fixed costs: Manufacturing costs Operating marketing) costs 12,000 $ 3,800 12,000 3,800 $ 2.250,000 $2,250,000 500,000 500,000 (b) Prepare April and May 2017 income statements for Accelerate Mators under absorption costing. Complete the top half of the income statement for each month first, then com favorable (F) ar unfavorable (LU). If an account does not have a variance, do not select a label.) as April 2017 May 2017 Print Done Accelerate Matars 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 cata.) The selling price per vehicle is $22,000. The budgeted level of production used to calculate the budgetec fixed manufacturing cost per unit is 600 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 (b) Prepare April and May 2017 income statements for Accelerate Motors under absorption costing. Complete the top half of the income statement for each month first, then complete the bottom portion (Enter a "" for any zero balance accounts, Label any variances as favorable (F) or unfavorable (U), If an account does not have a variance, do not select a label.) April 2017 May 2017 A Data Table April May 150 0 600 550 IN 450 670 Unil 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 $ 12,000 $ 3,800 12,000 3,800 $ 2,250,000 $ 2,250,000 500,000 500,000 Requirement 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable cosling and absorption costing. Begin by determining the formula that will highight the difference between the operating income under each method. Then complete the equation for each month. (Abbreviations answer boxes. Enter a 'O' for any zero balance accounts.) all Print Done Aheminiai Varighenti Accelerate Motors assembles and selle 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 $22.000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 600 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 cours. Read the requirements 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 sperating income under each method. Then complete the equation for each month. (Abbreviations used: Beg. - Beginning, End. - Ending, Var. - Variable, Mig - Manufacturing. Complete al answer baxes. Enter a "0" for any zero balance accounts.) Absorption costing Variable-casting operating income operating income - Apr May The difference between absorption and variable costing is due solely to moving into inventories as inventories and out of inventaries as they
