Chapter 09 Team Assignment #1 Problem 1: Bigscreen Corporation manufactures and sells 50-inch television sets. The company uses FIFO actual costing system. Actual data relating to January, February, and March are: JAN FEB MAR Selling Price $2,500 $2,500 $2,500 Unit data BI 0 300 300 Prod 1,000 800 1,250 Sales 700 800 1,500 Variable Costs Manf. Cost per unit produced $900 $900 $900 Marketing Cost per unit sold S600 $600 $600 Fixed Costs Manf. Costs $400,000 $400,000 $400,000 Marketing Costs S140,000 $140,000 $140,000 A fixed manufacturing cost rate is computed at the end of each month by dividing the actual fixed manufacturing costs by the actual production units. Required: Prepare income statements for each month under (1) absorption Costing, and (2) Variable Costing. Explain any differences in operating income for each month