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Requirements - X 1. Prepare income statements for Champion 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 Champion Motors to adopt throughput costing. Print Done Homework: 5-1 My AccountingLab Homework: Chapter 9 Score: 0 of 9 pts 2 of 5 (1 complete) E9-22 (similar to) Champion 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: (Click the icon to view the data.) The variable manufacturing costs per unit of Champion Motors are as follows: (Click the icon to view the variable manufacturing costs per unit.) Read the requirements (Click the icon to view the variable costing income statements.) (Click the icon to view the absorption costing income statements.) Requirement 1. Prepare income statements for Champion 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 * Data Table A variable costing income statements April May April 2017 $ 15,000,000 May 2017 $ 17,250,000 Revenues Unit data: Beginning inventory Production 0 600 100 500 575 $ $ 0 6,600,000 1,100,000 5,500,000 Sales 500 Variable costs: Beginning inventory Variable manufacturing costs Cost of goods available for sale Less: Ending inventory Variable cost of goods sold Variable operating costs 6,600,000 (1,100,000) 6,600,000 (275,000) 5,500,000 2,000,000 6,325,000 2,300,000 Variable costs: Manufacturing cost per unit produced $ 11,000 $ 11,000 Operating (marketing) cost per unit sold 4,000 4,000 Fixed costs: Manufacturing costs $ 2,250,000 $ 2,250,000 Operating (marketing) costs 500,000 500,000 The selling price per vehicle is $30,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 600 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. 7,500,000 8,625,000 7,500,000 8,625,000 Total variable costs Contribution margin Fixed costs: Fixed manufacturing costs 2,250,000 500,000 2,250,000 500,000 Fixed operating costs Total fixed costs 2,750,000 Print Done 2,750,000 4,750,000 $ $ 5,875,000 Operating income i absorption costing income statements - X April 2017 May 2017 Revenues $ 15,000,000 $ 17,250,000 $ Cost of goods sold: Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Cost of goods available for sale Less: Ending inventory 0 6,600,000 2,250,000 1,475,000 5,500,000 1,875,000 8,850,000 (1,475,000) 8,850,000 (368,750) 375,000 u Adjustment for production-volume variance 7,375,000 8,856,250 7,625,000 8,393,750 Cost of goods sold Gross margin Operating costs: Variable operating costs 2,000,000 500,000 2,300,000 500,000 Fixed operating costs Total operating costs 2,800,000 2,500,000 5,125,000 $ $ 5,593,750 Operating income Requirements - X 1. Prepare income statements for Champion 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 Champion Motors to adopt throughput costing. Print Done Homework: 5-1 My AccountingLab Homework: Chapter 9 Score: 0 of 9 pts 2 of 5 (1 complete) E9-22 (similar to) Champion 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: (Click the icon to view the data.) The variable manufacturing costs per unit of Champion Motors are as follows: (Click the icon to view the variable manufacturing costs per unit.) Read the requirements (Click the icon to view the variable costing income statements.) (Click the icon to view the absorption costing income statements.) Requirement 1. Prepare income statements for Champion 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 * Data Table A variable costing income statements April May April 2017 $ 15,000,000 May 2017 $ 17,250,000 Revenues Unit data: Beginning inventory Production 0 600 100 500 575 $ $ 0 6,600,000 1,100,000 5,500,000 Sales 500 Variable costs: Beginning inventory Variable manufacturing costs Cost of goods available for sale Less: Ending inventory Variable cost of goods sold Variable operating costs 6,600,000 (1,100,000) 6,600,000 (275,000) 5,500,000 2,000,000 6,325,000 2,300,000 Variable costs: Manufacturing cost per unit produced $ 11,000 $ 11,000 Operating (marketing) cost per unit sold 4,000 4,000 Fixed costs: Manufacturing costs $ 2,250,000 $ 2,250,000 Operating (marketing) costs 500,000 500,000 The selling price per vehicle is $30,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 600 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. 7,500,000 8,625,000 7,500,000 8,625,000 Total variable costs Contribution margin Fixed costs: Fixed manufacturing costs 2,250,000 500,000 2,250,000 500,000 Fixed operating costs Total fixed costs 2,750,000 Print Done 2,750,000 4,750,000 $ $ 5,875,000 Operating income i absorption costing income statements - X April 2017 May 2017 Revenues $ 15,000,000 $ 17,250,000 $ Cost of goods sold: Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Cost of goods available for sale Less: Ending inventory 0 6,600,000 2,250,000 1,475,000 5,500,000 1,875,000 8,850,000 (1,475,000) 8,850,000 (368,750) 375,000 u Adjustment for production-volume variance 7,375,000 8,856,250 7,625,000 8,393,750 Cost of goods sold Gross margin Operating costs: Variable operating costs 2,000,000 500,000 2,300,000 500,000 Fixed operating costs Total operating costs 2,800,000 2,500,000 5,125,000 $ $ 5,593,750 Operating income
