Salem 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: The selling price per unit is $3,500. 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. E (Click to view the data.) Read the requirements. Data table January February March (b). Prepare income statements for Salem Screen in January, February, and March 2020 under absorption costing. Unit data: Complete the top half of the income statement for each month first, then complete the bottom portion. (Enter a "0" for any zero balance accou not select a label. Abbreviation used; Adj. = Adjustment, Mfg. = Manufacturing.) Beginning inventory 150 150 Production 1,300 1,250 1,375 January 2020 February 2020 March 2020 Sales 1,150 1,250 1,380 Revenues Variable costs: Cost of goods sold: Manufacturing cost per unit produced $ 600 $ 600 $ 600 Beginning inventory Operating (marketing) cost per unit $ Variable manufacturing costs sold 475 $ 475 $ 475 Allocated fixed manufacturing costs Fixed costs: $ 533,000 $ 533,000 $ $ 110,000 $ 110,000 $ 110,000 Cost of goods available for sale Manufacturing costs 533,000 Deduct ending inventory Operating (marketing) costs Adj. for production-volume variance Cost of goods sold Gross margin

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 5EB: Smith Industries uses a cost system that carries direct materials inventory at a standard cost. The...
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Salem 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:
The selling price per unit is $3,500. 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.
(Click to view the data.)
Read the requirements.
- X
Data table
January
February
March
(b). Prepare income statements for Salem Screen in Jar
February, and March 2020 under absorptior
costing.
Unit data:
Complete the top half of the income statement for each month first, then complete the bottom portion. (Enter a "0" for any zero balance accou
not select a label. Abbreviation used; Adj. = Adjustment, Mfg. = Manufacturing.)
Beginning inventory
150
150
Production
1,300
1,250
1,375
January 2020
February 2020
March 2020
Sales
1,150
1,250
1,380
Revenues
Variable costs:
Cost of goods sold:
Manufacturing cost per unit produced $
600 $
600 $
600
Beginning inventory
Operating (marketing) cost per unit
$
Variable manufacturing costs
sold
475 $
475 $
475
Allocated fixed manufacturing costs
Fixed costs:
Cost of goods available for sale
Manufacturing costs
$ 533,000 $ 533,000 $
533,000
Deduct ending inventory
Operating (marketing) costs
$
110,000 $ 110,000 $
110,000
Adj. for production-volume variance
Cost of goods sold
Gross margin
Print
Done
Help me solve this
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Transcribed Image Text:Salem 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: The selling price per unit is $3,500. 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. (Click to view the data.) Read the requirements. - X Data table January February March (b). Prepare income statements for Salem Screen in Jar February, and March 2020 under absorptior costing. Unit data: Complete the top half of the income statement for each month first, then complete the bottom portion. (Enter a "0" for any zero balance accou not select a label. Abbreviation used; Adj. = Adjustment, Mfg. = Manufacturing.) Beginning inventory 150 150 Production 1,300 1,250 1,375 January 2020 February 2020 March 2020 Sales 1,150 1,250 1,380 Revenues Variable costs: Cost of goods sold: Manufacturing cost per unit produced $ 600 $ 600 $ 600 Beginning inventory Operating (marketing) cost per unit $ Variable manufacturing costs sold 475 $ 475 $ 475 Allocated fixed manufacturing costs Fixed costs: Cost of goods available for sale Manufacturing costs $ 533,000 $ 533,000 $ 533,000 Deduct ending inventory Operating (marketing) costs $ 110,000 $ 110,000 $ 110,000 Adj. for production-volume variance Cost of goods sold Gross margin Print Done Help me solve this Etext pages Get more help -
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