Crystal Clear 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 $2,900. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,100 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.Requirement 1 - Prepare income statements for Crystal Clear in January, February, and March 2020 under (a) variable costing and (b) absorption costing (a). Prepare income statements for Crystal Clear in January, February, and March of 2020 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.)January 2020February 2020March 2020☐☐☐☐ Unit data:Beginning inventoryProductionSalesVariable costs:January FebruaryMarch01501501,1001,0751,2009501,0751,205Manufacturing cost per unit producedᏌᏊ$950 $950 $950Operating (marketing) cost per unit sold$650 $650 $650Fixed costs:Manufacturing costs$440,000 $440,000 $440,000Operating (marketing) costs$180,000 $180,000 $180,000

To make the income statement for the variable and absorption costing method. We have to note the…

Answered: (a). Prepare income statements for…

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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Crystal Clear 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 $2,900. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,100 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.

Requirement 1 - Prepare income statements for Crystal Clear in January, February, and March 2020 under (a) variable costing and (b) absorption costing

(a). Prepare income statements for Crystal Clear in January, February, and March of 2020 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.)
January 2020
February 2020
March 2020
☐☐☐☐

Unit data:
Beginning inventory
Production
Sales
Variable costs:
January February
March
0
150
150
1,100
1,075
1,200
950
1,075
1,205
Manufacturing cost per unit produced
ᏌᏊ
$
950 $
950 $
950
Operating (marketing) cost per unit sold
$
650 $
650 $
650
Fixed costs:
Manufacturing costs
$
440,000 $
440,000 $
440,000
Operating (marketing) costs
$
180,000 $
180,000 $
180,000

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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