operating-income differences. Nascar Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2017 are as follows:

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 April and May 2017 income statements for Nascar Motors under (a) variable costing and (b) absorption costing.

17-24Weighted-average method, equivalent units. The assembly division of Quality Time Pieces, Inc. uses the weighted-average method of process costing. Consider the following data for the month of May 2017:

Physical Units (Watches)

Direct Materials

Conversion Costs

Beginning work in process (May 1)a

100

$ 459,888

$ 142,570

Started in May 2017

510

Completed during May 2017

450

Ending work in process (May 31)b

160

Total costs added during May 2017

$3,237,000

$1,916,000

a Degree of completion: direct materials, 80%; conversion costs, 35%.

b Degree of completion: direct materials, 80%; conversion costs, 40%.

1. Required:

Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.

17-25 Weighted-average method, assigning costs (continuation of 17-24).

2. Required:

For the data in Exercise 17-24, summarize the total costs to account for, calculate the cost per equivalent unit for direct materials and conversion costs, and assign costs to the units completed (and transferred out) and units in ending work in process.

17-26FIFO method, equivalent units. Refer to the information in Exercise 17-24. Suppose the assembly division at Quality Time Pieces, Inc. uses the FIFO method of process costing instead of the weighted-average method.

3. Required:

Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.

17-27FIFO method, assigning costs (continuation of 17-26).

4. Required:

For the data in Exercise 17-24, use the FIFO method to summarize the total costs to account for, calculate the cost per equivalent unit for direct materials and conversion costs, and assign costs to units completed (and transferred out) and to units in ending work in process.