Speedy Motors assembles and sells motor vehicles and uses standard costing. Actual data and variable costing and absorption costing income statements relating to April and May 2020 are as follows: (Click the icon to view the data.) (Click the icon to view the variable costing income statements.) (Click the icon to view the absorption costing income statements.) The variable manufacturing costs per unit of Speedy Motors are as follows: (Click the icon to view the variable manufacturing costs per unit.) Read the requirements. Requirement 1. Prepare income statements for Speedy Motors in April and May 2020 under throughput costing. Begin by completing the top portion of the statement, then the bottom portion. (Complete all input fields. Enter a "0" for any zero amounts.) Revenues Direct material cost of goods sold Beginning inventory Direct materials Cost of goods available for sale Deduct ending inventory Total direct material cost of goods sold Manufacturing costs April 2020 6,900,000 May 2020 8,740,000 Requirements 1. Prepare income statements for Speedy Motors in April and May 2020 under throughput costing. 2. Contrast the results in requirement 1 with the absorption and variable costing income statements presented. 3. Give one motivation for Speedy Motors to adopt throughput costing. Print Done
Speedy Motors assembles and sells motor vehicles and uses standard costing. Actual data and variable costing and absorption costing income statements relating to April and May 2020 are as follows: (Click the icon to view the data.) (Click the icon to view the variable costing income statements.) (Click the icon to view the absorption costing income statements.) The variable manufacturing costs per unit of Speedy Motors are as follows: (Click the icon to view the variable manufacturing costs per unit.) Read the requirements. Requirement 1. Prepare income statements for Speedy Motors in April and May 2020 under throughput costing. Begin by completing the top portion of the statement, then the bottom portion. (Complete all input fields. Enter a "0" for any zero amounts.) Revenues Direct material cost of goods sold Beginning inventory Direct materials Cost of goods available for sale Deduct ending inventory Total direct material cost of goods sold Manufacturing costs April 2020 6,900,000 May 2020 8,740,000 Requirements 1. Prepare income statements for Speedy Motors in April and May 2020 under throughput costing. 2. Contrast the results in requirement 1 with the absorption and variable costing income statements presented. 3. Give one motivation for Speedy Motors to adopt throughput costing. Print Done
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Speedy Motors assembles and sells motor vehicles and uses standard costing. Actual data and variable costing and absorption costing
income statements relating to April and May 2020 are as follows:
(Click the icon to view the data.)
(Click the icon to view the variable costing income statements.)
(Click the icon to view the absorption costing income statements.)
The variable manufacturing costs per unit of Speedy Motors are as follows:
(Click the icon to view the variable manufacturing costs per unit.)
Read the requirements.
Requirement 1. Prepare income statements for Speedy Motors in April and May 2020 under throughput costing.
Begin by completing the top portion of the statement, then the bottom portion. (Complete all input fields. Enter a "0" for any zero amounts.)
Revenues
Direct material cost of goods sold
Beginning inventory
Direct materials
Cost of goods available for sale
Deduct ending inventory
Total direct material cost of goods sold
Manufacturing costs
April 2020
6,900,000
May 2020
8,740,000
Requirements
1. Prepare income statements for Speedy Motors in April and May 2020 under
throughput costing.
2. Contrast the results in requirement 1 with the absorption and variable costing
income statements presented.
3. Give one motivation for Speedy Motors to adopt throughput costing.
Print
Done
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