last two question

decrease or increase

April May Unit data: Beginning inventory Production 0 150 500 400 350 510 $ 12,000 $ 12,000 Sales Variable costs: Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs: Manufacturing costs Operating (marketing) costs 3,200 3,200 $ 2,250,000 $ 2,250,000 800,000 800,000 Cool Car Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2018 are provided. Click to view the dota. 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 Cool Car Motors under (a) variable costing and (b) absorption costing. 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing. Requirement 1a. Prepare April and May 2018 statements of comprehensive income for Cool Car Motors under variable costing. Complete the top half of the statement of comprehensive income for each month first, and then complete the bottom portion (Enter a "O" for any zero balance accounts.) April 2018 May 2018 Less: Requirement 1b. Prepare April and May 2018 statements of comprehensive income for Cool Car Moto Complete the top half of the statement of comprehensive income for each month first, and then complet does not have a variance, do not select a label.) Requirement 1b. Prepare April and Mwy 2018 is of comprensive income for Cools Motors under absorption costing Complete the top half of the statement of compreensive come for each month fest, and then complete the bottom portion (Ewa fet any beter account If an account the otherine, do not see a bel> April 2018 May 2018 Low II II Requirement 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing Begin by determining the formula that will highlight the difference between the operating income under each method. Then complete the equation for each month. (Enter an amount in each input cell) Absorption costing Variable costing operating income - operating income Apr May The difference between absorption and variable costing is due solely to moving into inventories as inventories and out of inventories as they ol Car Motors under (a) variable costing and (b) a veen operating income for each month under varia fference between operating income for each month ne of hen comp fixed manufacturing costs fixed operating costs variable manufacturing costs variable operating costs oving slon into inventories as continue to the next