Requirements 1. Prepare income statements for HD 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.NEED TRUE HELP WITH WORKING HD Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual datarelating to January, February, and March 2020 are as follows:(Click to view the data.)RevenuesVariable cost of goods sold:Beginning inventoryVariable manufacturing costsCost of goods available for saleRequirement 1. Prepare income statements for HD in January, February, and March 2020 under (a) variable costing and (b) absorption costing.(a). Prepare income statements for HD 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 2020March 2020Deduct ending inventoryVariable cost of goods soldVariable operating costsContribution margin.$0910,000910,000(97,500)$3,375,000812,500875,0001,687,500February 2020$ 97,500877,500C...975,000(97,500)$ 3,645,000The selling price per unit is $2,700. The budgeted level of production used to calculate thebudgeted fixed manufacturing cost per unit is 1,400 units. There are no price, efficiency, orspending variances. Any production-volume variance is written off to cost of goods sold in themonth in which it occurs.Read the requirements.877,500945,0001,822,50097,500942,5001,040,0003,996,0001,036,000Activate WindowsGo to Settings to activato Wir Data tableUnit data:Beginning inventoryProductionSalesVariable costs:Manufacturing cost per unit producedOperating (marketing) cost per unit soldFixed costs:Manufacturing costsOperating (marketing) costs$$$January01,4001,250February650 $700 $490,000 $190,000 $1501,3501,350650 $700 $490,000 $190,000 $March- X1501,4501,480650700490,000190,000

Variable Costing - In this costing method, variable costs are considered while preparing the cost of…

Unit data: Beginning inventory Production Sales Variable costs: Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs: Manufacturing costs Operating (marketing) costs $ $ $ $ January 0 1,400 1,250 February 650 $ 700 $ 490,000 $ 190,000 $ 150 1,350 1,350 650 $ 700 $ 490,000 $ 190,000 $ March 150 1,450 1,480 650 700 490,000 190,000

Unit data: Beginning inventory Production Sales Variable costs: Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs: Manufacturing costs Operating (marketing) costs $ $ $ $ January 0 1,400 1,250 February 650 $ 700 $ 490,000 $ 190,000 $ 150 1,350 1,350 650 $ 700 $ 490,000 $ 190,000 $ March 150 1,450 1,480 650 700 490,000 190,000

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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