9-24 Throughput costing (continuation of 9-23). The variable manufacturing costs per unit of Entertain Me Corporation are as follows: Direct material cost per unit Direct manufacturing labor cost per unit Manufacturing overhead cost per unit Unit data: 1. Prepare income statements for EntertainMe in January, February, and March 2017 under throughput costing. Beginning inventory Production January $ 525 200 275 $1,000 Additional Information: Variable and absorption costing, explaining operating-income differences. EntertainMe Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2017 are as follows: Sales Variable costs: Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs: Manufacturing costs Operating (marketing) costs January 0 1,500 1,350 February $ 525 200 275 $1,000 $ 1,000 $ 800 $525,000 $130,000 February 150 1,400 1,400 March $ 525 200 275 $1,000 $1,000 $800 $525,000 $130,000 March 150 1,520 1,530 $ 1,000 S 800 $525,000 $130,000 The selling price per unit is $3,300. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,500 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.
9-24 Throughput costing (continuation of 9-23). The variable manufacturing costs per unit of Entertain Me Corporation are as follows: Direct material cost per unit Direct manufacturing labor cost per unit Manufacturing overhead cost per unit Unit data: 1. Prepare income statements for EntertainMe in January, February, and March 2017 under throughput costing. Beginning inventory Production January $ 525 200 275 $1,000 Additional Information: Variable and absorption costing, explaining operating-income differences. EntertainMe Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2017 are as follows: Sales Variable costs: Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs: Manufacturing costs Operating (marketing) costs January 0 1,500 1,350 February $ 525 200 275 $1,000 $ 1,000 $ 800 $525,000 $130,000 February 150 1,400 1,400 March $ 525 200 275 $1,000 $1,000 $800 $525,000 $130,000 March 150 1,520 1,530 $ 1,000 S 800 $525,000 $130,000 The selling price per unit is $3,300. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,500 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:9-24 Throughput costing (continuation of 9-23). The variable manufacturing costs per unit of EntertainMe
Corporation are as follows:
Direct material cost per unit
Direct manufacturing labor cost per unit
Manufacturing overhead cost per unit
Unit data:
1. Prepare income statements for EntertainMe in January, February, and March 2017 under throughput
costing.
Beginning inventory
Production
Additional Information:
Variable and absorption costing, explaining operating-income differences. EntertainMe Corporation
manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January,
February, and March 2017 are as follows:
Sales
Variable costs:
Manufacturing cost per unit produced
Operating (marketing) cost per unit sold
January
$ 525
200
275
$1,000
Fixed costs:
Manufacturing costs
Operating (marketing) costs
January
1,500
1,350
February
$ 525
200
275
$1,000
$ 1,000
$
800
$525,000
$130,000
February
150
1,400
1,400
March
$ 525
200
275
$1,000
$ 1,000
$ 800
$525,000
$130,000
March
150
1,520
1,530
$ 1,000
S 800
$525,000
$130,000
The selling price per unit is $3,300. The budgeted level of production used to calculate the budgeted fixed
manufacturing cost per unit is 1,500 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.
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