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1. Prepare income statements for Crystal Clear in January and February 2017 under throughput costing.

1. Prepare income statements for Crystal Clear in January and February 2017 under throughput costing.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 60P: Scattergraph, High-Low Method, and Predicting Cost for a Different Time Period from the One Used to...
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9-23 Variable and absorption costing, explaining operating-income differences. Crystal Clear Corporation manufactures and sells 50-inch televi sets and uses standard costing. Actual data relating to January and February 2017 are as follows: Unit data Beginning entry Production Sales Variable costs Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs Manufacturing costs Operating (marketing) costs January 0 1,400 1,300 Direct material cost per unit Direct manufacturing labor cost per unit Manufacturing overhead cost per unit $ 950 $725 $490,000 $120.000 February 100 1275 1375 January $550 175 225 $950 $950 $725 The selling price per unit is $3,500. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,400 u There are no price-, efficiency-, or spending variances. Any production- volume variance is written off to cost of goods sold in the month in whi occurs. $490,000 $120.000 1. Prepare income statements for Crystal Clear in January and February 2017 under (a) variable costing and (b) absorption costing. 9-24 Throughput costing (continuation of 2-23). The variable manufacturing costs per unit of Cantal Clear Corporation are as follows: February $550 175 225 $950 Required: 1. Prepare income statements for Crystal Clear in January and February 2017 under throughput costing.
Transcribed Image Text:9-23 Variable and absorption costing, explaining operating-income differences. Crystal Clear Corporation manufactures and sells 50-inch televi sets and uses standard costing. Actual data relating to January and February 2017 are as follows: Unit data Beginning entry Production Sales Variable costs Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs Manufacturing costs Operating (marketing) costs January 0 1,400 1,300 Direct material cost per unit Direct manufacturing labor cost per unit Manufacturing overhead cost per unit $ 950 $725 $490,000 $120.000 February 100 1275 1375 January $550 175 225 $950 $950 $725 The selling price per unit is $3,500. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,400 u There are no price-, efficiency-, or spending variances. Any production- volume variance is written off to cost of goods sold in the month in whi occurs. $490,000 $120.000 1. Prepare income statements for Crystal Clear in January and February 2017 under (a) variable costing and (b) absorption costing. 9-24 Throughput costing (continuation of 2-23). The variable manufacturing costs per unit of Cantal Clear Corporation are as follows: February $550 175 225 $950 Required: 1. Prepare income statements for Crystal Clear in January and February 2017 under throughput costing.
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