Requirement 1. Prepare income statements for Race Track 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) April 2017 May 2017 Revenues 2 of 7 (5 complete) e statements.) rack Motors in April and May 2017 under throughput costing. en the bottom Data Table - X April 2014 April May Unit data: Beginning inventory 0 50 Production 400 325 Sales 350 335 Variable costs Manufacturing cost per unit produced $ 8,500 $ 8,500 Operating (marketing) cost per unit sold 2,400 2,400 Fixed costs Manufacturing costs $ 2,200,000 $ 2,200,000 Operating (marketing) costs 725.000 725,000 The selling price per vehicle is $26.000. 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. at fields and Print Done i variable costing income statements - X Revenues $ 9,100,000 $ 8,710,000 $ $ 425,000 2,762,500 3,400,000 3,400.000 (425.000) 3.187,500 (340,000) Variable costs. Beginning inventory Variable manufacturing costs Cost of goods available for sale Less Ending inventory Variable cost of goods sold Variable operating costs Total variable costs Contribution margin Fixed costs Fixed manufacturing costs Fixed operating costs Total fixed costs 2.975,000 840,000 2,847,500 804,000 3.815.000 3,651,500 5,285,000 5,058,500 2.200.000 725.000 2,200,000 725.000 2.925.000 2.925.000 Print Done absorption costing income statements $ 9,100,000 $ 8,710,000 $ 0 $ 3,400,000 2,200,000 700,000 2,762,500 1.787,500 Revenues Cost of goods sold: Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Con of goods available for sale Less: Ending inventory Adjustment for production-volume variance Cost of goods sold Gross margin Operating costs Variable operating costs Fixed operating costs Total operating costs 5,600,000 (700,000) 0 5,250.000 (560,000) 412,500 4,900,000 5,102,500 4.200,000 3,607,500 840.000 725,000 804,000 725,000 1,529.000 1.565,000 $ 2,635,000 narating income $ 2.078,500 2017 are as follows: (Click the icon to view the variable ma Read the requirements. and May 2017 under throughput costing. - X Data Table April May $ 6,800 $ 6.800 Direct material cost per unit Direct manufacturing labor cost per unit Manufacturing overhead cost per unit 1.400 1.400 300 300 Print Done Requirements X 1. Prepare income statements for Race Track 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 Race Track Motors to adopt throughput costing Print Done Requirement 1. Prepare income statements for Race Track 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) April 2017 May 2017 Revenues 2 of 7 (5 complete) e statements.) rack Motors in April and May 2017 under throughput costing. en the bottom Data Table - X April 2014 April May Unit data: Beginning inventory 0 50 Production 400 325 Sales 350 335 Variable costs Manufacturing cost per unit produced $ 8,500 $ 8,500 Operating (marketing) cost per unit sold 2,400 2,400 Fixed costs Manufacturing costs $ 2,200,000 $ 2,200,000 Operating (marketing) costs 725.000 725,000 The selling price per vehicle is $26.000. 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. at fields and Print Done i variable costing income statements - X Revenues $ 9,100,000 $ 8,710,000 $ $ 425,000 2,762,500 3,400,000 3,400.000 (425.000) 3.187,500 (340,000) Variable costs. Beginning inventory Variable manufacturing costs Cost of goods available for sale Less Ending inventory Variable cost of goods sold Variable operating costs Total variable costs Contribution margin Fixed costs Fixed manufacturing costs Fixed operating costs Total fixed costs 2.975,000 840,000 2,847,500 804,000 3.815.000 3,651,500 5,285,000 5,058,500 2.200.000 725.000 2,200,000 725.000 2.925.000 2.925.000 Print Done absorption costing income statements $ 9,100,000 $ 8,710,000 $ 0 $ 3,400,000 2,200,000 700,000 2,762,500 1.787,500 Revenues Cost of goods sold: Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Con of goods available for sale Less: Ending inventory Adjustment for production-volume variance Cost of goods sold Gross margin Operating costs Variable operating costs Fixed operating costs Total operating costs 5,600,000 (700,000) 0 5,250.000 (560,000) 412,500 4,900,000 5,102,500 4.200,000 3,607,500 840.000 725,000 804,000 725,000 1,529.000 1.565,000 $ 2,635,000 narating income $ 2.078,500 2017 are as follows: (Click the icon to view the variable ma Read the requirements. and May 2017 under throughput costing. - X Data Table April May $ 6,800 $ 6.800 Direct material cost per unit Direct manufacturing labor cost per unit Manufacturing overhead cost per unit 1.400 1.400 300 300 Print Done Requirements X 1. Prepare income statements for Race Track 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 Race Track Motors to adopt throughput costing Print Done