Question
Please help with this question This is Variable Costing Income Statement This is Absorption costing Income Statement The variable manufacturing costs per unit of FastRide
Please help with this question
This is Variable Costing Income Statement
This is Absorption costing Income Statement
The variable manufacturing costs per unit of FastRide Motors are as follows:
Requirements:
Options for requirement 1
Requirement 2. Contrast the results in requirement 1 with the absorption and variable costing income statements presented. (Choose options is bracelets)
In April, [Absorption costing / throughput costing / variable costing] has the lowest operating income, whereas in May [Absorption costing / throughput costing / variable costing] has the highest operating income.
[Absorption costing / Throughput costing / Variable costing] puts greater emphasis on sales as the source of operating income than does either [absorption or throughput costing / absorption or variable costing / throughput or variable costing ]
Requirement 3. Give one motivation for FastRide Motors to adopt throughput costing.
[ Absorption / Throughput / Variable ] costing puts a penalty on production without a corresponding sale in the same period. Costs other than direct materials that are variable with respect to production are [ capitalized / expensed ] in the period of incurrence, whereas under variable costing they would be [ capitalized / expensed ]
As a result, [ absorption costing / throughput costing / variable costing ] provides less incentive to produce for inventory than either [ absorption or throughput costing / absorption or variable costing / throughput or variable costing ]
.
Requirement 1. Prepare income statements for FastRide Motors in April and May 2017 under throughput costing. Begin by completing the top portion of the statement, then the bottom portion. (Complete all answer boxes. Enter a "0" for any zero amounts.) Data table The selling price per vehicle is $25,000. 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. Data table Requirements 1. Prepare income statements for FastRide Motors in April and May 2017 under throughput costing. 2. Contrast the results in requirement 1 with the absorption and variable costing income statements presented. 3. Give one motivation for FastRide Motors to adopt throughput costing. Requirement 1. Prepare income statements for FastRide Motors in April and May 2017 under throughput costing. Begin by completing the top portion of the statement, then the bottom portion. (Complete all answer boxes. Enter a "0" for any zero amounts.) Cost of goods available for sale Deduct ending inventory Direct material cost of goods sold Direct materials Manufacturing costs Other operating costs Throughput margin Total direct material cost of goods sold Total other costsStep by Step Solution
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