EntertainMe Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2020 are as follows: (Click the icon to view the actual data.) The selling price per unit is $3,300. 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. The variable manufacturing costs per unit of EntertainMe Corporation are as follows: (Click the icon to view the variable manufacturing cost data.) EntertainMe 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. Data table Unit data: Beginning inventory Production January February March 0 150 150 1,500 1,400 1,520 1,350 1,400 1,530 Sales Variable costs: Manufacturing cost per unit produced $ 1,000 $ 1,000 $ 1,000 Operating (marketing) cost per unit sold $ 800 $ 800 $ 800 Fixed costs: Manufacturing costs $ 525,000 $ 525,000 $ 525,000 Operating (marketing) costs $ 130,000 $ 130,000 $ 130,000 Print Done - - Data table January February March Direct material cost per unit $ 525 $ 525 $ 525 Direct manufacturing labor cost per unit 200 200 200 275 275 275 Manufacturing overhead cost per unit $ 1,000 $ 1,000 $ 1,000 Print Done Variable costing income statement Revenues Variable costs: January 2020 February 2020 $ 4,455,000 $ 4,620,000 March 2020 $ 5,049,000 Beginning inventory $ 0 $ 150,000 1,500,000 1,400,000 Variable manufacturing costs $ 150,000 1,520,000 Cost of goods available for sale 1,500,000 1,550,000 1,670,000 Less: Ending inventory (150,000) (150,000) (140,000) Variable cost of goods sold 1,350,000 1,400,000 1,530,000 1,080,000 1,120,000 1,224,000 Variable operating costs 2,430,000 2,520,000 2,754,000 Total variable costs Contribution margin 2,025,000 2,100,000 2,295,000 Fixed costs: Fixed manufacturing costs 525,000 Fixed operating costs 130,000 525,000 130,000 525,000 130,000 655,000 655,000 655,000 Total fixed costs $ 1,370,000 $ 1,445,000 $ 1,640,000 Operating income Print Done Absorption costing income statement January 2020 Revenues Cost of goods sold: Beginning inventory February 2020 $ 4,455,000 $ 4,620,000 March 2020 $ 5,049,000 0 202,500 $ 202,500 Variable manufacturing costs 1,500,000 1,400,000 1,520,000 525,000 490,000 532,000 Allocated fixed manufacturing costs Cost of goods available for sale 2,025,000 2,092,500 2,254,500 Less: Ending inventory (202,500) (202,500) 0 Adj. for production-volume variance 35,000 U (189,000) (7,000) F 1,822,500 1,925,000 2,058,500 Cost of goods sold Gross margin 2,632,500 2,695,000 2,990,500 Operating costs: Variable operating costs 1,080,000 130,000 Fixed operating costs 1,120,000 130,000 1,210,000 Total operating costs $ 1,422,500 1,224,000 130,000 1,250,000 $ 1,445,000 1,354,000 $ 1,636,500 Operating income -A UAV Print Done - VIGUA DHAW Requirements 1. Prepare income statements for EntertainMe in January, February, and March 2020 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 EntertainMe to adopt throughput costing. Print Done