Race Track Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2018 are provided. - (Click to view the data.) 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 rate variances. Any production-volume variance is written off to COGS in the month in which it occurs. Required 1. Prepare April and May 2018 statements of comprehensive income for Race Track Motors under (a) variable costing and (b) absorption costing. 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing. Requirement 1a. Prepare April and May 2018 statements of comprehensive income for Race Track Motors under variable costing. Complete the top half of the statement of comprehensive income for each month first, and then complete the bottom portion. (Enter a "O" for any zero balance accounts.) April 2018 May 2018 Revenue Cost of goods sold: Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Less: Cost of goods available for sale Ending inventory Adjustment for production-volume variance Cost of goods sold Gross margin Variable costs: II TI Race Track Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2018 are provided. B (Click to view the data.) 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 rate variances. Any production-volume variance i Required 1. Prepare April and May 2018 statements of comprehensive income for Race Track Motors under (a) variable costing and (b) absorption costing. 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing. written off to COGS in the month in which it occurs. Requirement 1b. Prepare April and May 2018 statements of comprehensive income for Race Track Motors under absorption costing. Complete the top half of the statement of comprehensive income for each month first, and then complete the bottom portion. (Enter a "0" for any zero balance accounts. If an account does not have a variance, do not select a label.) April 2018 May 2018 Less: Requirement 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing. Begin by determining the formula that will highlight the difference between the operating income under each method. Then complete the equation for each month. (Enter an amount in each input cell.) Absorption-costing Variable-costing operating income - Operating income = Apr. May The difference between absorption and variable costing is due solely to moving into inventories as inventories and out of inventories as they Choose from any list or enter any number in the input fields and then continue to the next question. ? Race Track Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2018 are provided. - (Click to view the data.) 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 rate variances. Any production-volume variance is written off to COGS in the month in which it occurs. Required 1. Prepare April and May 2018 statements of comprehensive income for Race Track Motors under (a) variable costing and (b) absorption costing. 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing. Requirement 1a. Prepare April and May 2018 statements of comprehensive income for Race Track Motors under variable costing. Complete the top half of the statement of comprehensive income for each month first, and then complete the bottom portion. (Enter a "O" for any zero balance accounts.) April 2018 May 2018 Revenue Cost of goods sold: Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Less: Cost of goods available for sale Ending inventory Adjustment for production-volume variance Cost of goods sold Gross margin Variable costs: II TI Race Track Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2018 are provided. B (Click to view the data.) 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 rate variances. Any production-volume variance i Required 1. Prepare April and May 2018 statements of comprehensive income for Race Track Motors under (a) variable costing and (b) absorption costing. 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing. written off to COGS in the month in which it occurs. Requirement 1b. Prepare April and May 2018 statements of comprehensive income for Race Track Motors under absorption costing. Complete the top half of the statement of comprehensive income for each month first, and then complete the bottom portion. (Enter a "0" for any zero balance accounts. If an account does not have a variance, do not select a label.) April 2018 May 2018 Less: Requirement 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing. Begin by determining the formula that will highlight the difference between the operating income under each method. Then complete the equation for each month. (Enter an amount in each input cell.) Absorption-costing Variable-costing operating income - Operating income = Apr. May The difference between absorption and variable costing is due solely to moving into inventories as inventories and out of inventories as they Choose from any list or enter any number in the input fields and then continue to the next