Data table A B C April May 1 2 Unit data: 3 Beginning inventory 4 Production 5 Sales 6 Variable costs: 0 50 500 450 450 470 7 Manufacturing cost per unit produced $ 9,000 $ 9,000 8 Operating (marketing) cost per unit sold 3,400 3,400 9 Fixed costs: 10 Manufacturing costs $ 2,000,000 $ 2,000,000 11 Operating (marketing) costs 725,000 725,000 - nit d ma 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 spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs. Print Done Tin variable costing income statements Revenues Variable costs: April 2020 $ 11,700,000 May 2020 $ 12,220,000 Beginning inventory $ 0 4,500,000 $ 450,000 4,050,000 Variable manufacturing costs Cost of goods available for sale 4,500,000 4,500,000 Less: Ending inventory (450,000) (270,000) Variable cost of goods sold 4,050,000 4,230,000 1,530,000 1,598,000 Variable operating costs Total variable costs 5,580,000 5,828,000 Contribution margin 6,120,000 6,392,000 Fixed costs: Fixed manufacturing costs 2,000,000 725,000 2,000,000 725,000 Fixed operating costs Total fixed costs Operating income 2,725,000 $ 3,395,000 Print Done 2,725,000 $ 3,667,000 - absorption costing income statements Revenues Cost of goods sold: Beginning inventory April 2020 May 2020 $ 11,700,000 $ 12,220,000 $ 0 $ 650,000 Variable manufacturing costs 4,500,000 4,050,000 2,000,000 1,800,000 Allocated fixed manufacturing costs Cost of goods available for sale 6,500,000 6,500,000 Less: Ending inventory (650,000) (390,000) 0 Adjustment for production-volume variance 200,000 U 5,850,000 6,310,000 Cost of goods sold Gross margin 5,850,000 5,910,000 Operating costs: Variable operating costs 1,530,000 725,000 1,598,000 725,000 Fixed operating costs 2,255,000 2,323,000 Total operating costs $ 3,595,000 $ 3,587,000 Operating income Print Done - Data table A B C 1 April May 12 Direct material cost per unit $ 6,600 $ 6,600 13 Direct manufacturing labor cost per unit 1,700 1,700 14 Manufacturing overhead cost per unit 700 700 Print Done Requirements 1. Prepare income statements for Accelerate Motors in April and May 2020 under throughput costing. 2. Contrast the results in requirement 1 with the absorption and variable costing income statements presented. 3. Give one motivation for Accelerate Motors to adopt throughput costing. Print Done Accelerate Motors assembles and sells motor vehicles and uses standard costing. Actual data and variable costing and absorption costing income statements relating to April and May 2020 are as follows: (Click the icon to view the data.) (Click the icon to view the variable costing income statements.) (Click the icon to view the absorption costing income statements.) The variable manufacturing costs per unit of Accelerate Motors are as follows: (Click the icon to view the variable manufacturing costs per unit.) Read the requirements. Requirement 1. Prepare income statements for Accelerate Motors in April and May 2020 under throughput costing. Begin by completing the top portion of the statement, then the bottom portion. (Complete all input fields. Enter a "0" for any zero amounts.) April 2020 May 2020 Revenues Operating income Requirement 2. Contrast the results in requirement 1 with the absorption and variable costing income statements presented. In April, has the lowest operating income, whereas in May has the highest operating income. puts greater emphasis on sales as the source of operating income than does either e Requirement 3. Give one motivation for Accelerate Motors to adopt throughput costing. are costing puts a penalty on production without a corresponding sale in the same period. Costs other than direct materials that are variable with respect to production in the period of incurrence, whereas under variable costing they would be As a result, provides less incentive to produce for inventory than either