E9-22 (similar to) Question Help Speedy 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.) The variable manufacturing costs per unit of Speedy Motors are as follows: (Click the icon to view the variable manufacturing costs per unit.) Read the requirements. (Click the icon to view the variable costing income statements.) (Click the icon to view the absorption costing income statements.) Requirement 1. Prepare income statements for Speedy Motors in April and May 2017 under throughput costing. Begin by completing the top portion of the statement, then the bottom portion. (Complete all answer boxes. Enter a "0" for any zero amounts.) April 2017 May 2017 Revenues April May Unit data: Beginning inventory 0 50 Production 400 325 Sales 350 350 Variable costs: $ 8,500 $ 8,500 Manufacturing cost per unit produced Operating (marketing) cost per unit sold 3,200 3,200 Fixed costs: Manufacturing costs $ 2,000,000 $ 2,000,000 Operating (marketing) costs 800,000 800,000 The selling price per vehicle is $30,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 400 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. April 2017 May 2017 Revenues $ 10,500,000 $ 10,500,000 Variable costs: Beginning inventory $ 0 425,000 2,762,500 3,400,000 Variable manufacturing costs Cost of goods available for sale 3,400,000 (425,000) 3,187,500 (212,500) Less: Ending inventory Variable cost of goods sold 2,975,000 1,120,000 2,975,000 1,120,000 Variable operating costs 4,095,000 4,095,000 6,405,000 6,405,000 Total variable costs Contribution margin Fixed costs: Fixed manufacturing costs 2,000,000 800,000 2,000,000 800,000 Fixed operating costs Total fixed costs 2,800,000 2,800,000 $ 3.605.000 3.605.000 April 2017 May 2017 Revenues $ 10,500,000 $ 10,500,000 $ 0 $ 675,000 Cost of goods sold: Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Cost of goods available for sale Less: Ending inventory 3,400,000 2,000,000 2,762,500 1,625,000 5,400,000 5,062,500 (675,000) (337,500) 375,000 u 0 Adjustment for production-volume variance 4,725,000 5,100,000 5,775,000 5,400,000 Cost of goods sold Gross margin Operating costs: Variable operating costs 1,120,000 800,000 1,120,000 800,000 Fixed operating costs Total operating costs 1,920,000 1,920,000 $ 3,855,000 $ 3,480,000 1. Prepare income statements for Speedy 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 Speedy Motors to adopt throughput costing. E9-22 (similar to) Question Help Speedy 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.) The variable manufacturing costs per unit of Speedy Motors are as follows: (Click the icon to view the variable manufacturing costs per unit.) Read the requirements. (Click the icon to view the variable costing income statements.) (Click the icon to view the absorption costing income statements.) Requirement 1. Prepare income statements for Speedy Motors in April and May 2017 under throughput costing. Begin by completing the top portion of the statement, then the bottom portion. (Complete all answer boxes. Enter a "0" for any zero amounts.) April 2017 May 2017 Revenues April May Unit data: Beginning inventory 0 50 Production 400 325 Sales 350 350 Variable costs: $ 8,500 $ 8,500 Manufacturing cost per unit produced Operating (marketing) cost per unit sold 3,200 3,200 Fixed costs: Manufacturing costs $ 2,000,000 $ 2,000,000 Operating (marketing) costs 800,000 800,000 The selling price per vehicle is $30,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 400 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. April 2017 May 2017 Revenues $ 10,500,000 $ 10,500,000 Variable costs: Beginning inventory $ 0 425,000 2,762,500 3,400,000 Variable manufacturing costs Cost of goods available for sale 3,400,000 (425,000) 3,187,500 (212,500) Less: Ending inventory Variable cost of goods sold 2,975,000 1,120,000 2,975,000 1,120,000 Variable operating costs 4,095,000 4,095,000 6,405,000 6,405,000 Total variable costs Contribution margin Fixed costs: Fixed manufacturing costs 2,000,000 800,000 2,000,000 800,000 Fixed operating costs Total fixed costs 2,800,000 2,800,000 $ 3.605.000 3.605.000 April 2017 May 2017 Revenues $ 10,500,000 $ 10,500,000 $ 0 $ 675,000 Cost of goods sold: Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Cost of goods available for sale Less: Ending inventory 3,400,000 2,000,000 2,762,500 1,625,000 5,400,000 5,062,500 (675,000) (337,500) 375,000 u 0 Adjustment for production-volume variance 4,725,000 5,100,000 5,775,000 5,400,000 Cost of goods sold Gross margin Operating costs: Variable operating costs 1,120,000 800,000 1,120,000 800,000 Fixed operating costs Total operating costs 1,920,000 1,920,000 $ 3,855,000 $ 3,480,000 1. Prepare income statements for Speedy 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 Speedy Motors to adopt throughput costing