- X Data table January February March Unit data: Beginning inventory 0 150 150 Production 1, 100 1,075 1, 120 Sales 950 1,075 1,200 Variable costs: Manufacturing cost per unit produced EA 600 $ 600 $ 600 Operating (marketing) cost per unit sold $ 475 $ 475 $ 475 Fixed costs: Manufacturing costs $ 440,000 $ 440,000 $ 440,000 Operating (marketing) costs $ 110,000 $ 110,000 $ 110,000 Print DoneAllocated fixed manufacturing costs 440,000 430,000 448,000 Cost of goods available for sale 1, 100,000 1,225,000 1,270,000 Deduct ending inventory (150,000) (150,000) (70,000) Adj. for production-volume variance 10,000 U (8,000) Cost of goods sold 950,000 1,085,000 1, 192,000 Gross margin 2,280,000 2,570,000 2,888,000 Variable operating costs Fixed operating costs Operating incomeX Requirements 1. Prepare income statements for Chicago Screen in January, February, and March 2017 under (a) variable costing and (b) absorption costing. 2. Explain the difference in operating income for January, February, and March under variable costing and absorption costing. Print DoneContribution margin 2,203,750' 2,499,375' 2,790,000' Fixed manufacturing costs 440,000 440,000 440,000 Fixed operaung costs 110,000 110,000 110,000 operating income $1,658,750' 3; 1,949,375' $ 2,240,000V (h). Prepare income statements for Chicago Screen in January, Febmary, and March 2017 under absorption costing. Complete the top half of the income statement for each month rst, 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 2017 February 2017 March 2017 Revenues $3,230,000 $3,655,000' $4,080,000 Cost of goods sold: Beginning inventory $ 0V $ 150,000 $ 150,000' Variable manufacturing costs 660,000 645,000 672,000 Chicago Screen Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating The selling price per unit is $3,400. The budgeted level of production used to calculate the budgeted xed to January, February, and March 2017 are as follows: manufacturing cost per unit is 1,100 units. There are no price, efciency, or spending variances. Any production-volume variance is written oft to cost of goods sold in the month in which it occurs. a (Click to view the data.) Read the muirements. Requirement 1. Prepare income statements for Chicago Screen in January, February, and March 2017 under (a) variable costing and (b) absorption casting. (a). Prepare income statements for Chicago Screen in January, February, and March of 2017 under variable costing, Complete the top half of the income statement for each month rst, then complete the bottom portion. (Complete all answer boxes. Enter a "0" for any zero balance accounts.) January 2011 February 2017 March 2017 Revenues $ 3,230,000' $ 3,655,000' $ 4,080,000' Variable cost of goods sold: Beginning inventory $ 0' $ 90,000 $ 90,000 Variable manufacturing costs M M M Cost of goods available for sale 660,000 735,000 762,000 Deduct ending inventory (90000) (90.000) (42.000) Variable cost of goods sold 570,000V 645,000 720,000 451,250 510,625' 570,000V Variable operating costs