Managerial accounting

Chapter 8 Nascar Motors assem which unit costs are are: bles and sells motor vehicles. It uses an actual costing system in calculated each month. Data relating to April and May of 2016 1. April May Units Data: Beginning inventory Production Sales (Units) Selling price per vehicle 500 350 $24,000 150 400 520 $24,000 Variable cost data: Manufacturing costs per unit produced $10,000 Marketing costs per unit sold $10,000 $3,000 $3,000 Fixed cost data: Manufacturing costs Marketing costs 2,000,000 $600,000 $2,000,000 $600,000 Required i. Prepare the income statement for Nascar Motors in April and May of 2016 under: a. Variable costing. b. Absorption costing. Prepare a numerical reconciliation of the variable and absorption costing operating income figures for each month. ii. ii. Provide a brief explanation of the difference between the operating income for each month under variable costing and absorption costing