please dont provide answer in image format thank you Amazing Screen Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2020 are as follows: January February March Unit data: Beginning inventory 0 150 150 Production 1,300 1,250 1,375 Sales 1,150 1,250 1,380 Variable costs: Manufacturing cost per unit produced $850 $850 $850 Operating (marketing) cost per unit sold $650 $650 $650 Fixed costs: Manufacturing costs $533,000 $533,000 $533,000 Operating (marketing) costs $200,000 $200,000 $200,000 The selling price per unit is $2,300.The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,300 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. Requirements: 1. Prepare income statements for Amazing Screen in January, February, and March 2020 under (a) variable costing and (b) absorption costing. 2. Explain the difference in operating income for January, February, and March under variable costing and absorption costing.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

please dont provide answer in image format thank you

Amazing Screen Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2020 are as follows:

	January	February	March
Unit data:
Beginning inventory	0	150	150
Production	1,300	1,250	1,375
Sales	1,150	1,250	1,380
Variable costs:
Manufacturing cost per unit produced	$850	$850	$850
Operating (marketing) cost per unit sold	$650	$650	$650
Fixed costs:
Manufacturing costs	$533,000	$533,000	$533,000
Operating (marketing) costs	$200,000	$200,000	$200,000

The selling price per unit is $2,300.The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,300 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.

Requirements:

1.	Prepare income statements for Amazing Screen in January, February, and March 2020 under (a) variable costing and (b) absorption costing.
2.	Explain the difference in operating income for January, February, and March under variable costing and absorption costing.

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.

Expert Solution