Race Track Motors assembles and sells motor vehicles and usos standard costing. Actual data relating to April and May 2017 are as follows: Click the icon to view the data.) The selling price per vehicle is $28,000. 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. Read the requirements. (a) Prepare April and May 2017 income statements for Race Track Motors under variable costing. Complete the top half of the income statement for each month first, then complete the bottom portion (Complete all answer boxes. Enter a "0" for any zero balance accounts.) April 2017 May 2017 Choose from any list or enter any number in the input fields and then continue to the next question. 7: Hn xa c sao Race Track Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2017 are as follows: (Click the icon to view the data.) The selling price per vehicle is $28,000. 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. Read the requirements. (b) Prepare April and May 2017 income statements for Race Track Motors 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.) April 2017 May 2017 Choose from any list or enter any number in the input fields and then continue to the next question. UUS. Any production-volume variance is written off to cost of goods sold in the month in which it occurs. sw units. There Read the requirements 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. (Abbreviations used: Beg. = Beginning, End. - Ending, Var. = Variable, Mfg - Manufacturing. Complete all answer boxes. Enter a "O" for any zero balance accounts.) Absorption-costing operating income Variable-costing - operating income = Apr May into inventories as inventories and The difference between absorption and variable costing is due solely to moving out of inventories as they Choose from any list or enter any number in the input fields and then continue to the next question. MacBook Pro dolay 10 April May 2017 are as follow view the data.) vehicle is $28,000. The budaeted level of production used to calculate the budaeted fixed manufacturing cost per unit i cy, or spending hth in which it o Data Table uts. April May 100 500 450 pare a numerica 400 bnth under varia 520 g the formula the s used: Beg. = Unit data: Beginning inventory Prodoction Sales Variable costs: Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs: Manufacturing costs Operating (marketing) costs $ pomplete the equ pxes. Enter a "0" 11,000 $ 3,800 11,000 3,800 osting come va op - $ 2,200,000 $ 700,000 2,200,000 700,000 Print Print Done een absorption Done ies as inventorie: they
