Cool Ride Motors assembles and sells motor vehicles and uses standard costing. Actual data and variable costing and absorption costing Income statements relating to April and May 2017 are as follows: (Click the icon to view the data.) (Click the icon to view the variable costing income statements.) (Click the loon to view the absorption costing Income statements.) The variable manufacturing costs per unit of Cool Ride Motors are as follows: (Click the icon to view the variable manufacturing costs per unit.) Requirements Requirement 1. Prepare income statements for Cool Ride Motors in April and May 2017 under throughput costing. 1. Prepare income statements for Cool Ride Motors in April and May 2017 under throughput costing. 2. Contrast the results in requirement 1 with the absorption and variable costing income statements presented. 3. Give one motivation for Cool Ride Motors to adopt throughput costing. Begin by completing the top portion of the statement, then the bottom portion. (Complete all answer boxes. Enter a "O" for any zero amounts.) Revenues Direct material cost of goods sold Beginning inventory Direct materials Cost of goods available for sale Deduct ending inventory Total direct material cost of goods sold Throughput margin Data table April 2017 9.100,000 0 May 2017 13,650,000 April May Direct material cost per unit $ Direct manufacturing labor cost per unit Manufacturing overhead cost per unit 6,500 $ 1,300 6,500 1,300 700 700 Data table Unit date: Beginning inventory Production Sales Variable costs: April May 0 150 500 400 350 525 Manufacturing cost per unit produced $ 6,500 $ 0.500 Operating (marketing) cost per unit sold 3.800 3,800 Fixed costs: Manufacturing costs Operating (marketing) cons $ 2,400,000 $ 7,400,000 650,000 650,000 The selling price per vehicle is $25,000. The budgeted level of production used to ciculate the budgeted fixed manufacturing cost per unit is 500 units. There are no price efficiency, or spending variances. Any production-volume variance is written off to cast of goods sold in the month in which it occurs. absorption costing income statements x variable costing income statements Revenues April 2017 May 2017 $ 9,100,000 S 13,650,000 Revenues Cost of goods sold: Beginning inventory April 2017 May 2017 $ 9,100,000 $ 13,650,000 Variable costs: Beginning inventory S 0 $ 1,275,000 4,250,000 3,400,000 Variable manufacturing costs Cost of goods available for sale 1,250,000 1,675,000 Less: Ending Inventory (1,275,000) (212,500) Variable cost of goods sold 2,975,000 4,462,500 Cost of goods sold Variable operating costs 1,330,000 1,995,000 Gross margin S 0 $ 1,995,000 Variable manufacturing costs Allocated fixed manufacturing costs 4,250,000 2,400,000 3,400,000 1,920,000 Cost of goods available for sale 6,650,000 7,315,000 Less: Ending inventory (1,995,000) (332,500) Adjustment for production-volume variance 0 480,000 U 4,655,000 7,462,500 4,445,000 6,187,500 4,305,000 6,457,500 Operating costs: Total variable costs Variable operating costs Contribution margin 4,795,000 7,192,500 1,330,000 650,000 Fixed costs: Fixed operating costs 1,995,000 650,000 1,980,000 2,615,000 Fixed manufacturing costs 2,400,000 2.400.000 Total operating costs 650,000 Fixed operating costs 650,000 $ 2,465,000 $ 3,542,500 Operating income 3,050,000 Total fixed costs 3,050,000 5 1,745,000 $ 4,142,500 Operating income