FastRide Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2017 are as follows:

The selling price per vehicle is $27,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 700 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.

PREPARE APRIL AND MAY 2017 INCOME STATEMENTS FOR FASTRIDE MOTORS UNDER ABSORPTION COSTING.

April May Unit data: 0 50 Beginning inventory Production 700 625 Sales 650 650 Variable costs: $ 8,500 $ 8,500 Manufacturing cost per unit produced Operating (marketing) cost per unit sold 2,800 2,800 Fixed costs: $ 2,100,000 $ 2,100,000 Manufacturing costs Operating (marketing) costs 500,000 500,000