Question
Nascar Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to MAY 2017 as follows: UNIT DATA: BEGIN IINVENTORY 150 PRODUCTION
Nascar Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to MAY 2017 as follows:
UNIT DATA:
BEGIN IINVENTORY 150
PRODUCTION 400
SALES 520
VARIABLE COST:
DIRECT MATERIAL $ 6,700
DIRECT MANUF LABOUR 1,500
MANUF OVERHEAD 1,800
OPERATING (MARKETING)
PER UNIT SOLD 3,000
FIXED COSTS:
MANUFACTURING $ 2,000,000
OPERARING (MARKETING 600,000
The selling price per vehicle is $24,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 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.
Required: Prepare the below and answer the questions that follows
- Variable costing income statement for May 2017
- Absorption costing income statement for May 2017
- Throughput costing income statement for May 2017
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