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Accelerate 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 $26,000. 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 Accelerate Motors under (a) variable costing and (b) absorption costing. (a) Prepare April and May 2020 income statements for Accelerate 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.) Revenues April 2020 T May 2020 Data table 1 2 Unit data: A 3 4 5 Sales 6 Variable costs: 7 Manufacturing cost per unit produced $ 8 Operating (marketing) cost per unit sold 9 Fixed costs: Beginning inventory Production 10 Manufacturing costs 11 Operating (marketing) costs Print B April 0 Done 400 250 9,000 $ 2,000 C May 150 375 495 9,000 2,000 $ 2,200,000 $ 2,200,000 500,000 500,000 - X

Accelerate 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 $26,000. 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 Accelerate Motors under (a) variable costing and (b) absorption costing. (a) Prepare April and May 2020 income statements for Accelerate 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.) Revenues April 2020 T May 2020 Data table 1 2 Unit data: A 3 4 5 Sales 6 Variable costs: 7 Manufacturing cost per unit produced $ 8 Operating (marketing) cost per unit sold 9 Fixed costs: Beginning inventory Production 10 Manufacturing costs 11 Operating (marketing) costs Print B April 0 Done 400 250 9,000 $ 2,000 C May 150 375 495 9,000 2,000 $ 2,200,000 $ 2,200,000 500,000 500,000 - X

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Accelerate 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 $26,000. 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 Accelerate Motors under (a) variable costing and (b) absorption costing. (a) Prepare April and May 2020 income statements for Accelerate 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.) Revenues April 2020 C May 2020 Data table 1 2 Unit data: 3 4 Beginning inventory Production 5 Sales 6 Variable costs: 7 8 9 Fixed costs: 10 Manufacturing costs 11 Manufacturing cost per unit produced Operating (marketing) cost per unit sold Operating (marketing) costs Print $ B April 0 400 250 Done 9,000 $ 2,000 $ 2,200,000 $ 500,000 C May 150 375 495 9,000 2,000 2,200,000 500,000 - X
Transcribed Image Text:Accelerate 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 $26,000. 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 Accelerate Motors under (a) variable costing and (b) absorption costing. (a) Prepare April and May 2020 income statements for Accelerate 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.) Revenues April 2020 C May 2020 Data table 1 2 Unit data: 3 4 Beginning inventory Production 5 Sales 6 Variable costs: 7 8 9 Fixed costs: 10 Manufacturing costs 11 Manufacturing cost per unit produced Operating (marketing) cost per unit sold Operating (marketing) costs Print $ B April 0 400 250 Done 9,000 $ 2,000 $ 2,200,000 $ 500,000 C May 150 375 495 9,000 2,000 2,200,000 500,000 - X
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