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Please help me with an explanation on how you got your answers. (Update: The complete format was given, the question with the data tables along
Please help me with an explanation on how you got your answers. (Update: The complete format was given, the question with the data tables along with the requirements).
-X Requirements 1. Prepare income statements for Chicago Screen in January, February, and March 2017 under (a) variable costing and (b) absorption costing. 2. Explain the difference in operating income for January, February, and March under variable costing and absorption costing. Print Done High-Tech Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January February, and March 2017 are as follows: (Click the loon to view the actual data.) The selling price per unit is $2,800. The budgeted level of production used to calculate the budgeted fored manufacturing cost per unit is 1,500 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 The variable manufacturing costs per unit of High-Tech Corporation are as follows: (Click the icon to view the variable manufacturing cost dala.) High-Tech prepared the following income statements under variable costing and absorption costing. (Click the icon to view the variable cosling slalement.) (Click the icon to view the absorption costing statement.) Read the requirements Requirement 1. Prepare income statements for High-Tech in January, February, and March 2017 under throughput costing. Begn by completing the top portion of the statement, then the bottom portion (Enter a 'U' for any zero balance accounts.) January 2017 February 2017 March 2017 Revenues - X Data Table Variable costing income statement January February March January 2017 $ 3,780,000 February 2017 $ 4,130,000 March 2017 $ 4,382,000 Revenues Unit data: Beginning inventory Production 0 150 150 $ S $ 1.500 1.350 1,475 1,475 1,520 1.565 0 1,125,000 112.500 1,106,250 112,500 1,140,000 Sales 1,125,000 (112,500) 1,218,750 (112,500) 1,252,500 (78,750) S 750 $ 750 S 750 S 525 $ 525 S 525 Variable costs Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs: Manufacturing costs Operating (marketing) costs Variable costs: Beginning inventory Variable manufacturing costs Cost of goods available for sale Less: Ending inventory Variable cost of goods sold Variable operating costs Total variable costs Contribution margin Fixed costs: Fixed manufacturing costs Fixed operating costs Total fixed costs 1,012,500 708,750 1,106,250 774.375 1,173,750 821,625 S 1,880,625 525,000 $ 525,000 S 150,000 $ 150,000 S 1,721,250 1,995,375 525,000 150,000 S 2,058,750 2,249,375 2,386,625 - X Data Table 525,000 150,000 525,000 150,000 525,000 150,000 675,000 675,000 675,000 January February March $ 1,383,750 $ 1,574,375 $ 1,711,625 $ 400 $ 400 $ 400 Operating income Direct material cost per unit Direct manufacturing labor cost per unit Manufacturing overhead cost per unit 175 175 175 175 175 175 $ 750 $ 750 $ 750 Print Print Done Print Print Done - X Absorption costing income statement February 2017 March 2017 January 2017 $ 3,780,000 Revenues $ 4,130,000 $ 4,382,000 $ 0 $ 165,000 $ 165,000 1,125,000 525,000 1,106,250 516,250 1,140,000 532,000 1,650,000 Cost of goods sold: Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Cost of goods available for sale Less: Ending inventory Adj. for production-volume variance Cost of goods sold Gross margin Operating costs: Varia operating costs (165,000) 0 1,787,500 (165,000) 8,750 1,837,000 (115,500) (7,000) U F 1,485,000 1,631,250 1,714,500 2,295,000 2,498,750 2,667,500 708,750 150,000 774,375 150,000 821,625 150,000 Fixed operating costs Total operating costs 858,750 924,375 971,625 $ 1,436,250 $ 1,574,375 $ 1,695,875 Operating income Print DoneStep by Step Solution
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