Speedy 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 $25,000. 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 Speedy Motors under (a) variable costing and (b) absorption costing. (a) Prepare April and May 2020 income statements for Speedy 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 Speedy 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 dat
Speedy 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 $25,000. 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 Speedy Motors under (a) variable costing and (b) absorption costing. (a) Prepare April and May 2020 income statements for Speedy 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 Speedy 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 dat
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Topic Video
Question
Speedy
Motors assembles and sells motor vehicles and uses 2020
are as follows:LOADING...
(ClickThe selling price per vehicle is
manufacturing cost per unit is
$25,000.
The budgeted level of production used to calculate the budgeted fixed 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
Speedy
Motors under (a) variable costing and (b) absorption costing.(a) Prepare April and May
2020
income statements for
Speedy
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.)|
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Speedy
Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May
2020
are as follows:LOADING...
(ClickThe selling price per vehicle is
$25,000.
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
Speedy
Motors under (a) variable costing and (b) absorption costing.(a) Prepare April and May
2020
income statements for
Speedy
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.)|
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April 2020
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May 2020
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Transcribed Image Text:Data Table
A
B
C
April
May
2 Unit data:
3 Beginning inventory
150
4
Production
500
475
5
Sales
350
605
6 Variable costs:
7 Manufacturing cost per unit produced
$
8,000| $
8,000
8 Operating (marketing) cost per unit sold
3,400
3,400
9 Fixed costs:
10 Manufacturing costs
11 Operating (marketing) costs
the
$ 2,250,000 $ 2,250,000
550,000
550,000
LO
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