Motors assembles and sells motor vehicles, and uses standard costing. Actual data relating to April and May 2018 are 

The selling price per vehicle is $26,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 units. There are no price, efficiency, or rate variances. Any production-volume variance is written off to COGS in the month in which it occurs.

Required

1. Prepare April and May 2018 statements of comprehensive income for TC Motors under (a) variable costing and (bl absorption costing.

2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing.

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April May Unit data: Beginning inventory 150 Production 500 400 Sales 350 520 Variable costs: $ 10,000 $ 10,000 Manufacturing cost per unit produced Operating (marketing) cost per unit sold 3,000 3,000 Fixed costs: Manufacturing costs $2,000,000 $2,000,000 $ 600,000 $ 600,000 Operating (marketing) costs