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HipScreen Inc. manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January. February. and March of 2018 are as follows.

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HipScreen Inc. manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January. February. and March of 2018 are as follows. LOADING... (Click to view the data.) The selling price per unit is $3,100. Required 1. Present statements of comprehensive income for January, February, and March of 2018 under (a) variable costing and (b) absorption costing. 2. Explain the difference in operating income for January. February. and March under variable costing and absorption costing. Requirement 1a. Present statements of comprehensive income for January, February, and March of 2018 under variable costing. Complete the top half of the statement of comprehensive income for each month first, and then complete the bottom portion. January 2018 February 2018 March 2018 Revenue $2,790,000 $3,022,500 $3,797,500 Variable costs: Beginning inventory $0 $80,000 $60,000 Variable manufacturing costs 800,000 760,000 1,000,000 Cost of goods available for sale 800,000 840,000 1,060,000 Less: Ending inventory (80,000) (60,000) (80,000) Variable cost of goods sold 720,000 780,000 980,000 Variable operating costs 517,500 560,625 704,375 Total variable costs 1,237,500 1,340,625 1,684,375 Contribution margin 1,552,500 1,681,875 2,113,125 Fixed costs: Fixed manufacturing costs 400,000 400,000 400,000 Fixed operating costs 125,000 125,000 125,000 Total xed costs 525,000 525,000 525,000 Operating income $1,027,500 $1,156,875 $1,588,125

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