Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2020 are as follows: LOADING... (Click the icon to view the data.) The selling price per vehicle is $ 24 comma 000 . The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 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. Read the requirements LOADING... . Requirement 1. Prepare April and May 2020 income statements for Nascar Motors under (a) variable costing and (b) absorption costing. (a) Prepare April and May 2020 income statements for Nascar 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 May 2020 Choose from any list or enter any number in the input fields and then click Check Answer. A B C 1 April May 2 Unit data: 3 Beginning inventory 0 150 4 Production 500 400 5 Sales 350 520 6 Variable costs: 7 Manufacturing cost per unit produced $10,000 $10,000 8 Operating (marketing) cost per unit sold 3,000 3,000 9 Fixed costs: 10 Manufacturing costs $2,000,000 $2,000,000 11 Operating (marketing) costs 600,000 600,000

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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E9-21 (book/static)

Nascar

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

$ 24 comma 000

The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is

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.

Read the

requirements

Requirement 1. Prepare April and May

2020

income statements for

Nascar

Motors under (a) variable costing and (b) absorption costing.

(a) Prepare April and May

2020

income statements for

Nascar

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	May 2020

Choose from any list or enter any number in the input fields and then click Check Answer.

	A	B	C
1		April	May
2	Unit data:
3	Beginning inventory	0	150
4	Production	500	400
5	Sales	350	520
6	Variable costs:
7	Manufacturing cost per unit produced	$10,000	$10,000
8	Operating (marketing) cost per unit sold	3,000	3,000
9	Fixed costs:
10	Manufacturing costs	$2,000,000	$2,000,000
11	Operating (marketing) costs	600,000	600,000

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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