Question - The selling price per vehicle is $ 22,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 600 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.
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April
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May
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Unit data
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Beginning inventory
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0
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50
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Production
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600
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500
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Sales
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550
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530
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Variable costs
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|
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Manufacturing cost per unit produced
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$12,000
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$12,000
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Operating (marketing) cost per unit sold
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2,800
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2,800
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Fixed costs
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|
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Manufacturing costs
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$2,400,000
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$2,400,000
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Operating (marketing) costs
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800,000
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800,000
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Prepare April and May 2014 income statements for Race Track Motors under? absorption costing.