Nascar 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 2020 are as follows: DATA BASE: A B C 1 April May 2 Unit data: 3 Beginning inventory 0 100 4 Production 600 575 5 Sales 500 635 6 Variable costs: 7 Manufacturing cost per unit produced $9,000 $9,000 8 Operating (marketing) cost per unit sold 3,200 3,200 9 Fixed costs: 10 Manufacturing costs $2,250,000 $2,250,000 11 Operating (marketing) costs 550,000 550,000 The selling price per vehicle is $30,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 600 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: April 2020 May 2020 Revenues $15,000,000 $19,050,000 Variable costs: Beginning inventory $0 $900,000 Variable manufacturing costs 5,400,000 5,175,000 Cost of goods available for sale 5,400,000 6,075,000 Less: Ending inventory (900,000) (360,000) Variable cost of goods sold 4,500,000 5,715,000 Variable operating costs 1,600,000 2,032,000 Total variable costs 6,100,000 7,747,000 Contribution margin 8,900,000 11,303,000 Fixed costs: Fixed manufacturing costs 2,250,000 2,250,000 Fixed operating costs 550,000 550,000 Total fixed costs 2,800,000 2,800,000 Operating income ABSORPTION COSTING INCOME STATEMENTS: $6,100,000 $8,503,000 April 2020 May 2020 Revenues $15,000,000 $19,050,000 Cost of goods sold: Beginning inventory $0 $1,275,000 Variable manufacturing costs 5,400,000 5,175,000 Allocated fixed manufacturing costs 2,250,000 2,156,250 Cost of goods available for sale 7,650,000 8,606,250 Less: Ending inventory (1,275,000) (510,000) Adjustment for production-volume variance 0 93,750 U Cost of goods sold 6,375,000 8,190,000 Gross margin 8,625,000 10,860,000 Operating costs: Variable operating costs 1,600,000 2,032,000 Fixed operating costs 550,000 550,000 Total operating costs 2,150,000 2,582,000 Operating income $6,475,000 $8,278,000 The variable manufacturing costs per unit of Nascar Motors are as follows: A B C 1 April May 12 Direct material cost per unit $6,900 $6,900 13 Direct manufacturing labor cost per unit 1,600 1,600 14 Manufacturing overhead cost per unit 500 500 1. Prepare income statements for Nascar Motors in April and May 2020 under throughput costing. 2. Contrast the results in requirement 1 with the absorption and variable costing income statements presented. 3. Give one motivation for Nascar Motors to adopt throughput costing. Requirement 1. Prepare income statements for Motors in April and May under throughput costing. Begin by completing the top portion of the statement, then the bottom portion. (Complete all input fields. Enter a "0" for any zero amounts.) April 2020 May 2020 Revenues $15,000,000 $19,050,000 Direct material cost of goods sold Beginning inventory $0 Cost of goods available for sale Deduct ending inventory (1,275,000)