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Cool Car 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 $21,000. 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 Cool Car Motors under (a) variable costing and (b) absorption costing. (a) Prepare April and May 2020 income statements for Cool Car 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.) April 2020 Revenues Variable cost of goods sold: May 2020

Cool Car 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 $21,000. 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 Cool Car Motors under (a) variable costing and (b) absorption costing. (a) Prepare April and May 2020 income statements for Cool Car 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.) April 2020 Revenues Variable cost of goods sold: May 2020

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Cool Car 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 $21,000. 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 Cool Car Motors under (a) variable costing and (b) absorption costing. (a) Prepare April and May 2020 income statements for Cool Car 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.) April 2020 Revenues Variable cost of goods sold: Beginning inventory Variable manufacturing costs Fixed manufacturing costs (...) Cost of goods available for sale Gross margin Variable operating costs May 2020
Transcribed Image Text:Cool Car 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 $21,000. 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 Cool Car Motors under (a) variable costing and (b) absorption costing. (a) Prepare April and May 2020 income statements for Cool Car 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.) April 2020 Revenues Variable cost of goods sold: Beginning inventory Variable manufacturing costs Fixed manufacturing costs (...) Cost of goods available for sale Gross margin Variable operating costs May 2020
Requirements 1. Prepare April and May 2020 income statements for Cool Car 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. Data table A Print Beginning inventory Production 1 2 Unit data: 3 4 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 Done Print B April Done 0 400 350 8,000 $ 2,800 C May 50 350 380 8,000 2,800 $2,200,000 $2,200,000 500,000 500,000 - X X
Transcribed Image Text:Requirements 1. Prepare April and May 2020 income statements for Cool Car 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. Data table A Print Beginning inventory Production 1 2 Unit data: 3 4 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 Done Print B April Done 0 400 350 8,000 $ 2,800 C May 50 350 380 8,000 2,800 $2,200,000 $2,200,000 500,000 500,000 - X X
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