Acct 06 - P5

Nascar Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2020 are as follows: (Click the icon to view the data.) month in which it occurs. Read the requirements. Requirement 1. Prepare April and May 2020 income statements for Nascar Motors under (a) variable costing and (b) absorption costing. April 2020 May 2020 \begin{tabular}{|} \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} \begin{tabular}{|} \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} \begin{tabular}{|l|} \hline \\ \hline \\ \hline \end{tabular} have a variance, do not select a label. Requirement 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing The difference between absorption and variable costing is due solely to moving (30 and out of inventories as they (32)