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Variable and absorption costing, explaining operating-income differences. EntertainMe Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2017 are as follows: January Unit data: Beginning inventory 0 Production 1,500 Sales 1,350 Variable costs: Manufacturing cost per unit produced $ 1,000 Operating (marketing) cost per unit $ sold 800 Fixed costs: Manufacturing costs $525,000 Operating (marketing) costs $130,000 February 150 1,400 1,400 $ 1,000 $ 800 $525,000 $130,000 March 150 1,520 1,530 $ 1,000 $ 800 $525,000 $130,000 The selling price per unit is $3,300. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,500 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. 1. Prepare income statements for EntertainMe in January, February, and March 2017 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.

You will only be allowed to do your assignment by using excel or word. If you send the same assignment, your assignment will be 0 and report to school for 2-d offence. Assignment is worth 10% Example-1 Variable and absorption costing, explaining operating-income differences. EntertainMe Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2017 are as follows: January February March Unit data: 0 150 150 Beginning inventory Production 1,500 1,350 1,400 1,400 1,520 1,530 Sales Variable costs: Manufacturing cost per unit produced S 1,000 $ 1,000 $ 1,000 $ 800 Operating (marketing) cost per unit sold $ 800 $ 800 Fixed costs: Manufacturing costs Operating (marketing) costs $525,000 $130,000 $525,000 $525,000 $130,000 $130,000 The selling price per unit is $3,300. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 1,500 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. 1. Prepare income statements for EntertainMe in January, February, and March 2017 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

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