9 4.docx

TV PlusTV Plus Corporation manufactures and sells? 50-inch television sets and uses standard costing. Actual data relating to? January, February, and March 20172017 are as? follows: LOADING... ?(Click the icon to view the actual? data.) The selling price per unit is $ 2 comma 800$2,800. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1 comma 3001,300 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. The variable manufacturing costs per unit of TV PlusTV Plus Corporation are as? follows: LOADING... ?(Click the icon to view the variable manufacturing cost? data.) TV PlusTV Plus prepared the following income statements under variable costing and absorption costing. LOADING... ?(Click the icon to view the variable costing? statement.) LOADING... ?(Click the icon to view the absorption costing? statement.) Read the requirements LOADING... . Requirement 1. Prepare income statements for TV PlusTV Plus in? January, February, and March 20172017 under throughput costing. Begin by completing the top portion of the? statement, then the bottom portion. ?(Enter a? "0" for any zero balance? accounts.)   January 2017 February 2017 March 2017 Revenues $3,360,000 $3,570,000   $3,794,000 Direct material cost of goods sold:       Beginning inventory $0 $60,000 $60,000   Direct materials in goods manufactured 780,000 765,000 798,000   Cost of goods available for sale 780,000 825,000 858,000   Deduct ending inventory (60,000) (60,000) (45,000)   Total direct material cost of goods sold 720,000 765,000   813,000 Throughput margin 2,640,000 2,805,000   2,981,000 Manufacturing costs   988,000   979,250   998,500 Other operating costs   960,000   1,008,750   1,060,750 Operating income $692,000 $817,000   $921,750 Requirement 2. Contrast the results in requirement 1 with the operating income results under variable costing and absorption costing. In? January, throughput costing has the lowest operating? income, whereas in March throughput costing has the highest operating income. Throughput costing puts greater emphasis on sales as the source of operating income than does either absorption or variable costing. Requirement 3. Give one motivation for TV PlusTV Plus to adopt throughput costing. Throughput costing puts a penalty on production without a corresponding sale in the same period. Costs other than direct materials that are variable with respect to production are expensed in the period of? incurrence, whereas under variable costing they would be capitalized. As a? result, throughput costing provides less incentive to produce for inventory than either absorption or variable costing.