The variable manufacturing costs per unit of EntertainMe Corporation are as follows:

Required

1. Prepare income statements for EntertainMe in January, February, and March 2020 under throughput costing.
2. Contrast the results in requirement 1 of this exercise with those in requirement 1 of Exercise 9-23.
3. Give one motivation for EntertainMe to adopt throughput costing.

Data From Exercise 9-23 

EntertainMe Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2020 are as follows:

The selling price per unit is $3,300. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,500 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.

Transcribed Image Text:

Direct material cost per unit Direct manufacturing labor cost per unit Manufacturing overhead cost per unit January $ 525 200 275 $1,000 February $ 525 200 275 $1,000 March $ 525 200 275 $1,000