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$1,000 1,000 ST,000 1. Prepare income statements for EntertainMe in January, February, and March 2017 under throughput costing 2. Contrast the results in requirement 1 of this exercise with those in requirement 1 of Exercise 9-23. 3. Give one motivation for EntertainMe to adopt throughput costing. 9-25 Variable versus absorption costing. The Tomlinson Company manufactures trendy, high-quality moderately priced watches. As Tomlinson's senior financial analyst, you are asked to recommend a method of inventory costing. The CFO will use your recommendation to prepare Tomlinson's 2017 income statement. The following data are for the year ended December 31, 2017: Beginning inventory, January 1, 2017 Ending inventory, December 31, 2017 2017 sales Selling price (to distributor) Variable manufacturing cost per unit, including direct materials Variable operating (marketing) cost per unit sold Fixed manufacturing costs Denominator-level machine-hours Standard production rate Fixed operating (marketing) costs 90,000 units 34,000 units 433,000 units $24.00 per unit $5.40 per unit $1.20 per unit sold $1,852,200 6,300 60 units per machine-hour $1,130,000 Assume standard costs per unit are the same for units in heninning inventon $1,000 1,000 ST,000 1. Prepare income statements for EntertainMe in January, February, and March 2017 under throughput costing 2. Contrast the results in requirement 1 of this exercise with those in requirement 1 of Exercise 9-23. 3. Give one motivation for EntertainMe to adopt throughput costing. 9-25 Variable versus absorption costing. The Tomlinson Company manufactures trendy, high-quality moderately priced watches. As Tomlinson's senior financial analyst, you are asked to recommend a method of inventory costing. The CFO will use your recommendation to prepare Tomlinson's 2017 income statement. The following data are for the year ended December 31, 2017: Beginning inventory, January 1, 2017 Ending inventory, December 31, 2017 2017 sales Selling price (to distributor) Variable manufacturing cost per unit, including direct materials Variable operating (marketing) cost per unit sold Fixed manufacturing costs Denominator-level machine-hours Standard production rate Fixed operating (marketing) costs 90,000 units 34,000 units 433,000 units $24.00 per unit $5.40 per unit $1.20 per unit sold $1,852,200 6,300 60 units per machine-hour $1,130,000 Assume standard costs per unit are the same for units in heninning inventon