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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: The
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: 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. 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. | ||||||
Data | January | February | March |
Unit data: | |||
Beginning inventory | 0 | 150 | 150 |
Production | 1,500 | 1,400 | 1,520 |
Sales | 1,350 | 1,400 | 1,530 |
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 |
(b). Prepare income statements for EntertainMe in January, February, and March 2020 under absorption costing. | |||||
Please help step by step with the preparation of the income statement under absorption costing.
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