FastRide Motors assembles and sells motor vehicles and uses standard costing. Actual data and variable costing and absorption costing income statements relating to April and May 2017 are as follows: (Click the icon to view the data.) The variable manufacturing costs per unit of FastRide Motors are as follows: (Click the icon to view the variable manufacturing costs per unit.) Read the requirements. (Click the icon to view the variable costing income statements.) (Click the icon to view the absorption costing income statements.) Requirement 1. Prepare income statements for FastRide Motors in April and May 2017 under throughput costing. Begin by completing the top portion of the statement, then the bottom portion. (Complete all answer boxes. Enter a "0" for any zero amounts.) April 2017 May 2017 Revenues ata Table a table April May Unit data: 0 150 Beginning inventory Production 400 375 Sales 250 495 9,000 $ 9,000 Variable costs: Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs: 2,800 2,800 Manufacturing costs $ 2,000,000 $ 2,000,000 Operating (marketing) costs 625,000 625,000 The selling price per vehicle is $25,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 400 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. - Variable costing income statements variable costing income statements April 2017 May 2017 Revenues $ 6,250,000 $ 12,375,000 Variable costs: Beginning inventory $ 0 3,600,000 $ 1,350,000 3,375,000 Variable manufacturing costs Cost of goods available for sale 3,600,000 (1,350,000) 4,725,000 (270,000) Less: Ending inventory Variable cost of goods sold 2,250,000 700,000 4,455,000 1,386,000 Variable operating costs 2,950,000 Total variable costs 5,841,000 Contribution margin 3,300,000 6,534,000 Fixed costs: Fixed manufacturing costs 2,000,000 625,000 2,000,000 625,000 Fixed operating costs Total fixed costs 2,625,000 2,625,000 $ 675,000 $ 3,909,000 Operating income Drint Dono - absorption costing income statements INOU g income statements April 2017 May 2017 Revenues $ 6,250,000 $ 12,375,000 Cost of goods sold: $ 0 $ 2,100,000 3,600,000 2,000,000 3,375,000 1,875,000 7,350,000 5,600,000 (2,100,000) (420,000) Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Cost of goods available for sale Less: Ending inventory Adjustment for production-volume variance Cost of goods sold Gross margin Operating costs: Variable operating costs 0 125,000 u 3,500,000 7,055,000 2,750,000 5,320,000 700,000 625,000 1,386,000 625,000 Fixed operating costs Total operating costs 1,325,000 2,011,000 $ 1,425,000 $ 3,309,000 Operating income Data table May April $ 6,600 $ Direct material cost per unit 6,600 1,000 1,000 Direct manufacturing labor cost per unit Manufacturing overhead cost per unit 1,400 1,400 Requirements ments 1. Prepare income statements for FastRide Motors in April and May 2017 under throughput costing. 2. Contrast the results in requirement 1 with the absorption and variable costing income statements presented. 3. Give one motivation for FastRide Motors to adopt throughput costing. Print Done