Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

TV Plus Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2017 are as follows:

TV Plus Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2017 are as follows:

image text in transcribedThe selling price per unit is $2,600. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,300 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.

1.

Prepare income statements for TV Plus in January, February, and March 2017 under (a) variable costing and (b) absorption costing.

2.

Explain the difference in operating income for January, February, and March under variable costing and absorption costing.

January February March Unit data: Beginning inventory 150 150 Production 1,250 1,300 1,150 1,360 1,370 Sales 1,250 Variable costs: 750 Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs: $ $ 750 $ 475 $ 750 $ 475 $ 475 Manufacturing costs Operating (marketing) costs $ $ 533,000 $ 140,000 $ 533,000 $ 140,000 $ 533,000 140,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investments Analysis And Management

Authors: Charles P. Jones, Gerald R. Jensen

14th Edition

1119578078, 978-1119578079

More Books

Students also viewed these Accounting questions

Question

LO 14-7 What to do after an interview.

Answered: 1 week ago

Question

e. What age client does the person see?

Answered: 1 week ago