BigScreen Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March of 2015 are:

Required
1. Present statements of comprehensive income for Big Screen Corporation in January, February, and March of 2015 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.

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January February March Unit data Beginning inventory Production Sales 1,000 700 300 800 800 300 1,250 1,500 Variable costs: Manufacturing cost per unit produced Operting (marketing) cost per unit sold S 900 S 600 S 900S900 S 600 S600 Fixed costs: Manufacturing costs Operting (marketing) costs The selling price per unit is $3,000 S400,000 S400,000 $400,000 $140,000 $140,000 $140,000