Prepare income statements for HighTech in January, February, and March 2017 under absorption costing.

Complete the top half of the income statement for each month first, then complete the bottom portion. (Enter a "0" for any zero balance accounts. Label any variances as favorable (F) or unfavorable (U). If an account does not have a variance, do not select a label. Abbreviation used; Adj. = Adjustment, Mfg. = Manufacturing.)

The selling price per unit is $3,600. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,000

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

	January	February	March
Unit data:
Beginning inventory	0	150	150
Production	1,000	925	1,025
Sales	850	925	1,035
Variable costs:
Manufacturing cost per unit produced	$800	$800	$800
Operating (marketing) cost per unit sold	$775	$775	$775
Fixed costs:
Manufacturing costs	$420,000	$420,000	$420,000
Operating (marketing) costs	$110,000	$110,000	$110,000

Prepare income statements for

HighTech

in January, February, and March

2017

under absorption costing.

Complete the top half of the income statement for each month first, then complete the bottom portion. (Enter a "0" for any zero balance accounts. Label any variances as favorable (F) or unfavorable (U). If an account does not have a variance, do not select a label. Abbreviation used; Adj. = Adjustment, Mfg. = Manufacturing.)

			January 2017			February 2017			March 2017
Revenues					3060000			3330000			3726000
Cost of goods sold:
	Beginning inventory		0
	Variable manufacturing costs
	Allocated fixed manufacturing costs
	Cost of goods available for sale
	Deduct ending inventory
	Adj. for production-volume variance
	Cost of goods sold
Gross margin