E9-24 (similar to) ClearView Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January. February, and March 2017 are as follows: (Click the icon to view the actual data) The variable manufacturing costs per unit of ClearView Corporation are as follows: (Click the icon to view the variable manufacturing cost data) The selling price per unit is $3,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,500 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 ClearView prepared the following income statements under variable costing and absorption costing. (Click the icon to view the variable costing statement.) (Click the icon to view the absorption costing statement.) Read the requirements. Requirement 1. Prepare income statements for ClearView in January February, and March 2017 under throughput costing Begin by completing the top portion of the statement, then the bottom portion (Enter a "0" for any zero balance accounts.) January 2017 February 2017 March 2017 Revenues A Requirements 1. Prepare income statements for ClearView in January, February, and March 2017 under throughput costing. 2. Contrast the results in requirement 1 with the operating income results under variable costing and absorption costing. 3. Give one motivation for ClearView to adopt throughput costing. Print Done A Data Table - X * Data Table - X January February March Unit data: Beginning inventory 100 Production 0 1,500 1,400 1,475 1,475 100 1,520 1,550 Direct material cost per unit Direct manufacturing labor cost per unit January February March $ 350 $ 350 $ 100 100 100 400 400 400 Manufacturing overhead cost per unit $ 850 $ 850 $ 850 850 $ 850 Sales Variable costs: Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs: Manufacturing costs Operating (marketing) costs 850 $ 750 $ 750 $ 750 Print Print Done Done $ $ 525,000 $ 140,000 $ 525,000 $ 140,000 $ 525,000 140,000 Variable costing income statement March 2017 January 2017 $ 4,200,000 February 2017 $ 4,425,000 Revenues $ 4,650,000 Variable costs: $ $ $ 0 1,275,000 85,000 1,253,750 85,000 1.292.000 Beginning inventory Variable manufacturing costs Cost of goods available for sale Less: Ending inventory Variable cost of goods sold 1,275,000 (85,000) 1,338,750 (85,000) 1,377,000 (59.500) 1,190,000 1,050,000 1,253,750 1,106,250 1,317,500 1,162,500 Variable operating costs 2,240,000 2,360,000 2,480,000 1,960,000 2,065,000 2,170,000 Total variable costs Contribution margin Fixed costs: Fixed manufacturing costs 525,000 140,000 525,000 140,000 525,000 140.000 Fixed operating costs Total fixed costs 665,000 665,000 665,000 $ 1,295,000 $ 1,400,000 $ 1,505,000 Operating income * Absorption costing income statement - X March 2017 January 2017 $ 4,200,000 February 2017 $ 4,425,000 $ 4,650,000 Revenues Cost of goods sold: Beginning inventory Variable manufacturing costs $ $ $ 0 1,275,000 525,000 120,000 1,253,750 516,250 120,000 1,292,000 532,000 Allocated fixed manufacturing costs Cost of goods available for sale Less: Ending inventory 1,800,000 (120,000) 1,890,000 (120,000) 1,944,000 (84,000) Adj. for production-volume variance 8,750 U (7,000) F 1,680,000 1,778,750 1,853,000 2,520,000 2,646,250 2,797,000 Cost of goods sold Gross margin Operating costs Variable operating costs 1,050,000 140,000 1,106,250 140,000 1,162,500 140,000 Fixed operating costs Total operating costs 1,190,000 1,302,500 1,246,250 $ 1,400,000 $ 1,330,000 $ 1,494,500 Operating income