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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Please provide answer in text (Without image)
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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