E9-22 (similar to) Question Help Champion 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: The variable manufacturing costs per unit of Champion Motors are as follows E (Click the icon to view the variable manufacturing costs per unit) ad the requirements Data Table - X Requirements April 1. Prepare income statements for Champion 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 Champion Motors to adopt throughput costing Data Table Unit data Beginning inventory 100 Production 550 Sales 500 610 Variable costs Manufacturing cost per unit produced S 8,500 S 8.500 Operating (marketing) cost per unit sold 4,000 4,000 Fored costs Manufacturing costs $ 2,400,000 $ 2.400,000 Operating (marketing) costs 675,000 675,000 The selling price per vehicle is $27000 The budgeted level of production used to Calculate the budgeted faced manufacturing cost per unit is 600 units. There are no pnce, efficiency, or spending vanances Any production volume vanance is written oti to cost of goods sold in the month in which it occurs Direct material cost per unit Direct manufacturing labor cost per unit Manufacturing overhead cost per unit April 6,500 $ 1,800 200 May 6,500 1.800 200 Print Done Print Done arsi v absorption costing income statements y2 con icon April 2017 $ 13,500,000 May 2017 $ 16,470,000 icon 0 at 1.1 $ 1,250,000 4,675,000 2,200,000 5,100,000 2,400,000 mpleti Revenues Cost of goods sold: Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Cost of goods available for sale Less Ending inventory Adjustment for production volume variance Cost of goods sold Gross margin Operating costs Variable operating costs Foed operating costs Total operating costs 7,500,000 (1,250,000) 8,125,000 (500,000) Terial ca 200,000 ning in 6,250,000 7,825,000 mateng of goods 7,250,000 8,645,000 act ending Throughp perating 2,000,000 675,000 2.440,000 675,000 2,675.000 3,115,000 from any Print Done ring variable costing income statements VIA Vi vi April 2017 $ 13,500,000 May 2017 $ 16,470,000 Revenues Variable costs Beginning inventory $ epa ng the 0 5,100,000 850,000 4,675,000 Variable manufacturing costs Cost of goods available for sale 5,100,000 (850,000) 5,525,000 (340,000) Less Ending inventory Variable cost of goods sold ost of 4,250,000 2,000,000 5,185,000 2,440,000 ventor 6,250,000 7,625,000 ads avail 7,250,000 8,845,000 Variable operating costs Total variable costs Contribution margin Fixed costs Fixed manufacturing costs Fixed operating costs Total fixed costs ing inve ahput ma ng costs 2,400,000 675,000 2,400,000 675,000 3,075,000 3,075,000 any list of Print Done