High-Tech Corporation manufactures and sells 50-inch television sets and uses standard
costing. Actual data relating to January, February, and March 2020 are as follows:
(Click to view the data.)
The selling price per unit is $3,100. The budgeted level of production used to calculate the
budgeted fixed manufacturing cost per unit is 1,000 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.
Requirement 1. Prepare income statements for High-Tech in January, February, and March 2020 under (a) variable costing and (b) absorption costing.
(a). Prepare income statements for High-Tech 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.)
Data table
January 2020
February 2020
March 2020
January
February
March
Unit data:
Beginning inventory
0
150
150
Production
1,000
975
1,060
Sales
850
975
1,065
Variable costs:
Manufacturing cost per unit produced
$ 700 $
700 $
700
Operating (marketing) cost per unit sold
$ 650 $
650 $
650
Fixed costs:
Manufacturing costs
$ 420,000 $
420,000 $
420,000
Operating (marketing) costs
$ 140,000 $
140,000 $
140,000
