UP E9-22 (similar to) Champion Motors assembles and sela motor vehicles and standard conting. Actual data and variable coating and hoption The variable manufacturing perunk of Champion Motors are as follow coming income taiments relating to Aland May 2020 e as follows: i lok the icon to view the variantung pert) lick the lon to view the ) Read the moments (Click the loon to view the variable conting income statemen) Click the icon to view the absorption costing income statements Requirement 1. Prepare Income sements for Champion Motors in April and May 2020 under throughout costing Bagin by completing the top portion of the statement, then be bottom portion (Complete all input fields Enter a O" for any zero amounts.) April 2020 May 2020 Revenues A c April May 2 Unit data: 0 150 3 Beginning inventory Production 400 1325 5 Sales 250 445 6 Variable costs Manufacturing cost per unit produced s 8.500 5 8,500 Operating marketing) cost per unit sold 14,000 4,000 9 Fixed costs 10 Manufacturing costs $ 2.200,000 2.200,0001 11 Operating (marketing costs 700.000 700,000 The selling price per vehicle is $28.000. 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. i variable costing income statements May 2020 April 2020 $ 7.000.000 $ 12,460,000 $ 0 3,400,000 $ 1,275,000 2.762,500 Revenues Variable costs: Beginning inventory Variable manufacturing costs Cost of goods available for sale Loss Ending inventory Variable cost of goods sold Variable operating costs 3,400,000 (1.275,000) 4.037,500 (255,000) 2.125,000 1.000.000 3.782,500 1.780,000 3,125.000 5,562,500 3,875,000 6.897,500 Total variable costs Contribution margin Fixed costs Fixed manufacturing costs Fixed operating costs Total fixed costs 2.200,000 700,000 2,200.000 700,000 2.900.000 $ 3,997.500 2.900.000 975,000 $ Operating income Print Dono absorption costing income statements April 2020 $ 7,000,000 May 2020 $ 12.460,000 Revenues $ 0 3,400.000 2,200,000 $ 2.100,000 2.762.500 1.787,500 5.600.000 (2.100,000) 0 Cost of goods sold: Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Cost of goods available for sale Loss: Ending Inventory Adjustment for production-volume variance Cost of goods sold Gross margin Operating costs: Variable operating costs Fixed operating costs Total operating costs Operating income 6,650,000 (420,000) 412,500 3.500,000 6,642,500 3.500.000 5,817,500 1,000,000 700,000 1.700,000 $ 1.800.000 1.780,000 700,000 2,480.000 $ 3,337,500 Data Table A B April May S 6,500$ 6,500 12 Direct material cost per unit 13 Direct manufacturing labor cost per unit 14 Manufacturing overhead cost per unit 1.400 1.400 600 600 Print Done Requirements x 1. Prepare income statements for Champion Motors in April and May 2020 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