TV Plus Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2014 are as follows:

January, February, March Unit data,,, Beginning inventory, 0, 150, 150 Production," 1,500"," 1,450"," 1,520" Sales," 1,350"," 1,450"," 1,570" Variable costs,,, Manufacturing cost per unit produced,$600, $600, $600 Operating (marketing) cost per unit sold,$525, $525, $525 Fixed costs,,, Manufacturing costs," $525,000", "$525,000 $525,000" Operating (marketing) costs," $160,000"," $160,000"," $160,000"

The selling price per unit is $ 3000 The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1500 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.

Requirements:

1. Prepare income statements for tv plus in January, February, and March 2014 under (a) varibale costing and (b) absorption costing.

2. Explain the diffrence in operating income for Jan, Feb, and March under variable costing and absorption costing.