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Champion 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 $25.000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 600 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.

Champion 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 $25.000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 600 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.

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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9:35 Chegg Home Expert Q&A Student question pert.chegg.com Champion 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.) Show Transcribed Text Data table 1 2 Unit data: 3 4 5 689 My answers The selling price per vehicle is $25,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 600 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 requirement Beginning inventory Production Sales 6 Variable costs: 7 Manufacturing cost per unit produced $ 8 Operating (marketing) cost per unit sold 9 Fixed costs: 10 Manufacturing costs 11 Operating (marketing) costs Show Transcribed Text Requirements Print ||| VOD 4G VPN KB/S LTEB 46ıl 10% Ĵ Print + Done B April 0 Done 600 500 11,500 $ 3,200 C May 1. Prepare April and May 2020 income statements for Champion Motors under (a) variable costing and (b) absorption costing. 2 $2,250,000 $2,250,000 700,000 700,000 11,500 3,200 Time Left: 00:09:31 100 500 580 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing. X X
Transcribed Image Text:9:35 Chegg Home Expert Q&A Student question pert.chegg.com Champion 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.) Show Transcribed Text Data table 1 2 Unit data: 3 4 5 689 My answers The selling price per vehicle is $25,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 600 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 requirement Beginning inventory Production Sales 6 Variable costs: 7 Manufacturing cost per unit produced $ 8 Operating (marketing) cost per unit sold 9 Fixed costs: 10 Manufacturing costs 11 Operating (marketing) costs Show Transcribed Text Requirements Print ||| VOD 4G VPN KB/S LTEB 46ıl 10% Ĵ Print + Done B April 0 Done 600 500 11,500 $ 3,200 C May 1. Prepare April and May 2020 income statements for Champion Motors under (a) variable costing and (b) absorption costing. 2 $2,250,000 $2,250,000 700,000 700,000 11,500 3,200 Time Left: 00:09:31 100 500 580 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing. X X
1 2 Unit data: 3 Beginning inventory 4 Production 5 Sales 6 Variable costs: 7 Manufacturing cost per unit produced $ 8 Operating (marketing) cost per unit sold 9 Fixed costs: 10 Manufacturing costs 11 Operating (marketing) costs Show Transcribed Text A Requirements Print C B April 0 600 500 Done 11,500 $ 3,200 C May 100 500 580 11,500 3,200 $ 2,250,000 $2,250,000 700,000 700,000 1. Prepare April and May 2020 income statements for Champion Motors under (a) variable costing and (b) absorption costing. 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing. I X
Transcribed Image Text:1 2 Unit data: 3 Beginning inventory 4 Production 5 Sales 6 Variable costs: 7 Manufacturing cost per unit produced $ 8 Operating (marketing) cost per unit sold 9 Fixed costs: 10 Manufacturing costs 11 Operating (marketing) costs Show Transcribed Text A Requirements Print C B April 0 600 500 Done 11,500 $ 3,200 C May 100 500 580 11,500 3,200 $ 2,250,000 $2,250,000 700,000 700,000 1. Prepare April and May 2020 income statements for Champion Motors under (a) variable costing and (b) absorption costing. 2. Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing. I X
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