Salem Screen Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating...

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Salem Screen Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2020 are as follows: (Click to view the data.) The selling price per unit is $2,700. The budgeted level of production used to calculate the budgeted fixed mar turing cost per unit is 1,000 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 income statements for Salem Screen in January, February, and March 2020 under (a) variable costing and (b) absorption costing. (a). Prepare income statements for Salem Screen in January, February, and March of 2020 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.) Revenues January 2020 2430000 February 2020 2632500 March 2020 2848500 Variable cost of goods sold: Beginning inventory 0 60000 60000 Variable manufacturing costs 600000 585000 630000 Cost of goods available for sale 600000 645000 690000 Deduct ending inventory (60000) (60000) (57000) Variable cost of goods sold 540000 585000 633000 Variable operating costs 427500 463125 501125 Contribution margin 967500 1048125 6831125 Fixed manufacturing costs 480000 480000 480000 180000 180000 180000 Fixed operating costs 307500 388125 Operating income 6171125 (b). Prepare income statements for Salem Screen in January, February, and March 2020 under absorption costing. Data table January February March Unit data: Beginning inventory Production Sales 0 1,000 100 975 100 1,050 900 975 1,055 Variable costs: Manufacturing cost per unit produced Operating (marketing) cost per unit sold $ Fixed costs: $ 600 $ 600 $ 475 $ 475 $ 600 475 Manufacturing costs Operating (marketing) costs $ $ 480,000 $ 480,000 $ 180,000 $180,000 $ 480,000 180,000 Print Done Complete the top half of the income statement for each month first, then complete the bottom portion. (Enter a "0" for any zero balance accounts. Label any variances as favorable (F) or unfavorable (U). If an account does not have a variance, do not select a label. Abbreviation used; Adj. = Adjustment, Mfg. = Manufacturing.) January 2020 2430000 February 2020 2632500 March 2020 2848500 Revenues Cost of goods sold: Beginning inventory 0 108000 Variable manufacturing costs 540000 585000 Allocated fixed manufacturing costs 480000 468000 Cost of goods available for sale 1020000 1161000 Deduct ending inventory 108000 108000 108000 630000 504000 1242000 100001 04000 Salem Screen Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2020 are as follows: (Click to view the data.) The selling price per unit is $2,700. The budgeted level of production used to calculate the budgeted fixed mar turing cost per unit is 1,000 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 income statements for Salem Screen in January, February, and March 2020 under (a) variable costing and (b) absorption costing. (a). Prepare income statements for Salem Screen in January, February, and March of 2020 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.) Revenues January 2020 2430000 February 2020 2632500 March 2020 2848500 Variable cost of goods sold: Beginning inventory 0 60000 60000 Variable manufacturing costs 600000 585000 630000 Cost of goods available for sale 600000 645000 690000 Deduct ending inventory (60000) (60000) (57000) Variable cost of goods sold 540000 585000 633000 Variable operating costs 427500 463125 501125 Contribution margin 967500 1048125 6831125 Fixed manufacturing costs 480000 480000 480000 180000 180000 180000 Fixed operating costs 307500 388125 Operating income 6171125 (b). Prepare income statements for Salem Screen in January, February, and March 2020 under absorption costing. Data table January February March Unit data: Beginning inventory Production Sales 0 1,000 100 975 100 1,050 900 975 1,055 Variable costs: Manufacturing cost per unit produced Operating (marketing) cost per unit sold $ Fixed costs: $ 600 $ 600 $ 475 $ 475 $ 600 475 Manufacturing costs Operating (marketing) costs $ $ 480,000 $ 480,000 $ 180,000 $180,000 $ 480,000 180,000 Print Done Complete the top half of the income statement for each month first, then complete the bottom portion. (Enter a "0" for any zero balance accounts. Label any variances as favorable (F) or unfavorable (U). If an account does not have a variance, do not select a label. Abbreviation used; Adj. = Adjustment, Mfg. = Manufacturing.) January 2020 2430000 February 2020 2632500 March 2020 2848500 Revenues Cost of goods sold: Beginning inventory 0 108000 Variable manufacturing costs 540000 585000 Allocated fixed manufacturing costs 480000 468000 Cost of goods available for sale 1020000 1161000 Deduct ending inventory 108000 108000 108000 630000 504000 1242000 100001 04000