Question list

Question $1$

Question $2$

Champion Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May $2020$ are as follows:

$($Click the icon to view the data.$)$

The selling price per vehicle is $$27,000.$ The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is $400$ 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.

Read the requirements.

Requirement $1.$ Prepare April and May $2020$ income statements for Champion Motors under $($a$)$ variable costing and $($b$)$ absorption costing

$($a$)$ Prepare April and May $2020$ income statements for Champion Motors under variable costing. Complete the top half of the income statement for each month first, then complete the bottom portion. $($Complete all input fields. Enter a $"0"$ for any zero balance accounts.$)$

April $2020$

May $2020$

Data table

$\backslash$table$[[,$A$,,$B$,,$C$],[1,($t$),,$April,,May$],[2,$Unit data:,,,,$],[3,$Beginning inventory,,$0,,150],[4,$Production,,$400,,300],[5,$Sales,$6,250,,420],[6,$Variable costs,,,,$],[7,$Manufacturing cost per unit produced,$$,8,500,$$$,8,500],[8,$Operating $($marketing$)$ cost per unit sold,,$4,000,,4,000],[9,$Fixed costs:,,,,$],[10,$Manufacturing costs,$$,2,400,000,$$$,2,400,000$