EntertainMe 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 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.) Revenues Direct material cost of goods sold January 2017 February 2017 March 2017 rk st Data table Unit data: Beginning inventory Production -X ring January February March n are ew th 150 150 ne fo 1,500 1,400 1,520 ble c 1,350 1,400 1,530 ew t Sales Variable costs: Manufacturing cost per unit produced S 1,000 $ 1,000 $ 1,000 ow t Operating (marketing) cost per unit sold $ 800 $ 800 S 800 Fixed costs: Manufacturing costs S 525,000 S 525,000 $ 525,000 Operating (marketing) costs S 130,000 $ 130,000 $ 130,000 Data table ring costs Xoration are as f to view the va st data.) ared the followin variable costing January February March Direct material cost per unit $ 525 $ 525 $ 525 to view the var Direct manufacturing labor cost per unit 200 200 200 275 275 275 Manufacturing overhead cost per unit to view the abs $ 1,000 $ 1,000 $ 1,000 Print Done 17 Marc Revenues Variable costs: $ 4,455,000 $ 4,620,000 $ 5,049,000 Beginning inventory 0 $ 150,000 $ 150,000 Variable manufacturing costs 1,500,000 1,400,000 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) (0.000) 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 2,025,000 2,100,000 2,295.000 Contribution margin Fixed costs: Cost of goods available for sale 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 Variable operating costs 1,120,000 1,224,000 Total variable costs 2,430,000 2,520,000 2,754,000 Contribution margin 2,025,000 2,100,000 2,295,000 Fixed costs: Fixed manufacturing costs 525,000 130,000 Fixed operating costs Total fixed costs Operating income 525,000 525,000 130,000 130,000 655.000 665.000 655,000 $ 1,370,000 $ 1,445,000 $ 1,640.000 Print Done Absorption costing income statement January 2017 $ 4,455,000 February 2017 $ 4,620,000 Revenues Cost of goods sold. Beginning inventory $ 0 Variable manufacturing costs 1,500,000 Allocated fixed manufacturing 525,000 $ 202,500 1,400,000 490,000 costs Cost of goods available for sale 2,025,000 2,092,500 Less: Ending inventory (202,500) (202,500) Adj. for production-volume variance Cost of goods sold 0 35,000 U 1,822.500 1.925,000 March 2017 $ 202,500 1,520,000 532,000 254,500 $ 5,049,000 (189,000) (7.000) F 2,058,500 Absorption costing income statement CUSIS Cost of goods available for sale 2,025,000 2,092,500 Less: Ending inventory (202,500) (202,500) Adj. for production-volume variance 0 35,000 U Cost of goods sold Gross margin Operating costs: Variable operating costs 1,080,000 130,000 Fixed operating costs 1,822,500 1,925,000 2,632.500 2,695,000 1,120,000 130,000 1,210,000 Total operating costs Operating income $ 1.422.500 2,254,500 (189,000) (7.000) F 03/24/23 11:52 AM 2,058,500 2,990,500 1,224,000 30,000 1.250.000 1.354,000 $ 1,445,000 $1,636,500 Requirements 1. Prepare income statements for EntertainMe 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 EntertainMe to adopt throughput costing. Print Done - X