Acct 06 - P6

Chicago Screen Corporation manufactures and sells 50 -inch television sets and uses standard costing. Actual data relating to January, The selling price per unit is $3,400. The budgeted level of production used to calculate the budgeted fixed manufacturing cost February, and March 2020 are as follows: per unit is 1,000 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to (Click to view the data.) cost of goods sold in the month in which it occurs. Read the requirements. \begin{tabular}{lrrrr} & January & February & \multicolumn{1}{c}{ March } \\ \hline Unit data: & & & & \\ Beginning inventory & & 0 & 150 & 150 \\ Production & & 1,000 & 975 & 1,050 \\ Sales & & 850 & 975 & 1,095 \\ Variable costs: & & & & \\ Manufacturing cost per unit produced & $ & 600$ & 600$ & 600 \\ Operating (marketing) cost per unit sold & $ & 575$ & 575$ & 575 \\ Fixed costs: & & & & \\ Manufacturing costs & $ & 390,000$ & 390,000$ & 390,000 \\ Operating (marketing) costs & $ & 160,000$ & 160,000$ & 160,000 \end{tabular} Requirement 1. Prepare income statements for Chicago Screen in January, February, and March 2020 under (a) variable costing and (b) absorption costing. (a). Prepare income statements for Chicago Screen in January, February, and March of 2020 under variable costing. Complete the top half of the income statement for each month first, then complete the bottom portion. (Complete all input fields. Enter a "0" for any zero balance accounts.) (b). Prepare income statements for Chicago Screen in January, February, and March 2020 under absorption costing. Complete the top half of the income statement for each month first, then complete the bottom portion. (Enter a "0" for any zero balance accounts. Label any variances as fav quirement 2. Explain the difference in operating income for January, February, and March under variable costing and absorption costing. tter an amount in each input cell and enter a "0" for any zero balances. Abbreviations used: Beg. = beginning, End. = ending, Mfg. = Manufacturing, and Var. = Variable.) e difference between absorption and variable costing is due solely to moving (31) into inventories as inventories (32) and out of inventories as they (33