The variable manufacturing costs per unit of BigScreen

Corporation are:

JanuaryFebruaryMarch

Direct material cost per unit.......................$500.............$500..........$500

Direct manufacturing labour cost per unit.........100...............100...........100

Manufacturing overhead cost per unit.............300...............300...........300

.........................................................$900.............$900.........$900

Required

1. Prepare operating statements of comprehensive income for BigScreen Corporation in January,

February, and March of 2015 under throughput costing.

2. Contrast the results in requirement 1 with those in requirement 1 of Exercise 9-18.

3. Give one motivation for BigScreen to adopt throughput costing.