*Prepare income statements for Accelerate 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.)

Accelerate 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

2017 are as follows:

	April	May
Unit data:
Beginning inventory	0	150
Production	400	375
Sales	250	505
Variable costs:
Manufacturing cost per unit produced	$9,500	$9,500
Operating (marketing) cost per unit sold	4,000	4,000
Fixed costs:
Manufacturing costs	$2,200,000	$2,200,000
Operating (marketing) costs	700,000	700,000

The selling price per vehicle is $28,000.

The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 400

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.

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Data Table

	April	May
Direct material cost per unit	$7,000	$7,000
Direct manufacturing labor cost per unit	2,000	2,000
Manufacturing overhead cost per unit	500	500

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absorption costing income statements

			April 2017		May 2017
Revenues				$7,000,000			$14,140,000
Cost of goods sold:
	Beginning inventory		$0		$2,250,000
	Variable manufacturing costs		3,800,000		3,562,500
	Allocated fixed manufacturing costs		2,200,000		2,062,500
	Cost of goods available for sale		6,000,000		7,875,000
	Less:	Ending inventory	(2,250,000)		(300,000)
	Adjustment for production-volume variance		0		137,500	U
	Cost of goods sold			3,750,000			7,712,500
Gross margin				3,250,000			6,427,500

Operating costs:
	Variable operating costs		1,000,000		2,020,000
	Fixed operating costs		700,000		700,000
	Total operating costs			1,700,000		2,720,000
Operating income				$1,550,000		$3,707,500

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variable costing income statements

			April 2017		May 2017
Revenues				$7,000,000		$14,140,000
Variable costs:
	Beginning inventory		$0		$1,425,000
	Variable manufacturing costs		3,800,000		3,562,500
	Cost of goods available for sale		3,800,000		4,987,500
	Less:	Ending inventory	(1,425,000)		(190,000)
	Variable cost of goods sold		2,375,000		4,797,500
	Variable operating costs		1,000,000		2,020,000
	Total variable costs			3,375,000		6,817,500
Contribution margin				3,625,000		7,322,500

Fixed costs:
	Fixed manufacturing costs		2,200,000		2,200,000
	Fixed operating costs		700,000		700,000
	Total fixed costs			2,900,000		2,900,000
Operating income				$725,000		$4,422,500