What am I doing wrong in Method 1? I am trying to get -$8,750 like I did using Method 2 at the very bottom of these steps. Can you show me what I must do in Method 1 to get -$8,750, please? Thanks!

E9-24 (similar to), TV Plus Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2017 are as follows: (Click the icon to view the actual data.) The selling price per unit is $3,400. 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. The variable manufacturing costs per unit of TV Plus Corporation are as follows: Click the icon to view the variable manufacturing cost data.) TV Plus prepared the following income statements under variable costing and absorption costing. (Click the icon to view the variable costing statement.) (Click the icon to view the absorption costing statement.) Read the requirements - X Data Table March 100 1,525 1,530 January February Unit data: Beginning inventory 0 100 Production 1,500 1,450 Sales 1,400 1,450 Variable costs: Manufacturing cost per unit produced $ 900 $ 900 $ Operating (marketing) cost per unit sold $ 650 $ 650 $ Fixed costs: Manufacturing costs 525,000 $ 525,000 $ Operating (marketing) costs $ 170,000 $ 170,000 $ 900 650 $ 525,000 170,000 * Absorption costing income statement January 2017 $ 4,760,000 February 2017 $ 4,930,000 March 2017 $ 5,202,000 1,350,000 525,000 $ 125,000 1,305,000 507,500 1937,500 (125,000) $ 125,000 1,372,500 533,750 2,031.250 (118,750) 1,875,000 (125,000) 17,500 u (8,750) F Revenues Cost of goods sold Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Cost of goods available for sale Less Ending inventory Adj, for production-volume variance Cost of goods sold Gross margin Operating costs Variable operating costs Fixed operating costs Total operating costs Operating income 1.750,000 1,830,000 3,100,000 1.903.750 3.298,250 3,010,000 910,000 170,000 942,500 170,000 994,500 170,000 1,080,000 1.112.500 1.164.500 $ 2,133,750 $ 1.930,000 $ 1,987.500 i Requirements 1. Prepare income statements for TV Plus in January, February, and March 2017 under throughput costing. 2. Contrast the results in requirement 1 with the operating income results under variable costing and absorption costing. 3. Give one motivation for TV Plus to adopt throughput costing. Budgeted-fixed manufacturing (in cost per unit: *525,000 is-Fixed manufacturing costs (Total-Fixed Manufacturing cost). I *1,500-is Budgeted (Planned) Production units-of-50-inch television sets. [1,500 from January 2017-of-Data-Table] 1 Before preparing the income statements we need to calculate the budgeted (planned) fixed manufacturing cost per unit --This is the amount of fixed manufacturing costs (expenses) that we will allocate to each unit produced. Let's calculate the-fixed manufacturing cost per unit now. 1 Budgeted fixed manufacturing. (mfg) cost per unit-Formula 1 Budgeted fixed manufacturing costs Budgeted production =Budgeted-fixed manufacturing (mfg) cost per unit $525,000 Budgeted fixed manufacturing costs 1,500 Budgeted production 1 =-$350. Completed =-$350-is-Budgeted fixed manufacturing (now cost per unit I will need to allocate (assign, apply) the budgeted-(planned) fixed manufacturing costs to the units they produced. --Let's do this for both now.f 1 Allocated fixed manufacturing costs Formula = Budgeted fixed manufacturing cost per unit-x-Units produced =-Allocated fixed manufacturing costs =-$350-x-1,525 units of the-50-inch television produced [1,525 units produced From Data-Table- for-March-2017] = $533,750. Completed V$533,750 is the fixed manufacturing costs that are allocated to a total of 1.525 50-inch- television sets produced in the period (March-2017). [For-Requirement-2]1 V$350 is Budgeted-fixed manufacturing cost per unit is allocated to each unit of a product(e.g.. vehicle) out of 1,525 units of 50-inch television sets produced in the period (March-2017). Total-Variable-Manufacturing Costs: 1 *$900 Variable (Manufacturing cost per vehicle produced) [S900-from-Data-Table] *1,525 units of budgeted-(planned) production-of-50-inch television sets and/or produced vehicles available at ending balance of Inventory in-May-2017 = $900-x-1,525 units of budgeted (planned) production-of-50-inch television sets and/or produced v50-inch television sets available at-ending balance of Inventory in-May-20179 = $1,372,500-V Completed $1,372,500 is the Total Variable-Manufacturing Cost. I Beginning-Inventory (Beginning balance of account called Finished goods Inventory): 1 100 units of 50-inch television sets at the beginning balance of Finished goods Inventory. I V$900-Variable (Manufacturing cost per-50-inch television-set produced) [$900 From-Data Table] V$350-is-Budgeted-fixed manufacturing (motion cost per unit. [$350-from-Part:B of Requirement 11 Manufacturing overhead costs"(Total Manufacturing overhead cost).Formula =-Variable (Manufacturing cost per unit) +-Budgeted fixed manufacturing (mincost per unit =-Manufacturing-overhead-costs-(Total-Manufacturing overhead-cost) = $900+$3501 = $1,250-V Completed = $1,250-x-100-50-inch television sets at the beginning balance of Finished-goods-Inventory =-$125,000- Completed $125,000 -is the beginning balance and/or dollar value for the 100 number of 50-inch television sets representing the Cost of goods manufactured portion of the account called Finished goods Inventory and cost-of goods manufactured portion of the account called-Finished-goods inventory. I Cost of goods available for sale:1 $125,000-is the dollar value for the 100 number of 50-inch television sets representing the Cost- of goods manufactured portion of the account called-Work-in-Process-Inventory-and-Cost of goods manufactured portion of the account called-Finished-goods-inventory. I 1 $1,372,500 is the Total Variable-Manufacturing Cost. $533,750-is the fixed manufacturing costs (total fixed manufacturing costs is allocated. [For Requirement 2]1 Cost-of goods available for sale Formula =Beginning-Inventory (Beginning balance of Finished goods inventory)+-Total Manufacturing Overhead-costs-or-Total-cost-(Total-Variable Manufacturing Cost) +- Fixed manufacturing costs- allocated:(total fixed manufacturing costs) =-Cost of goods available for sale =-$125,000+$1,372,500+ $533.7509 =-$2.031,250. Completed $2,031,250-is the-Cost-of goods available for sale. I Ending Inventory (Ending balance of account called Finished goods Inventory): 1 100 number of 50-inch television-sets representing Beginning-Inventory and/or at the beginning balance of Finished goods-Inventory in-March-2017. [100 units-from-Data-Table] 1,525 units of budgeted-(planned) production-of-50-inch television sets and/or produced-50-inch- television sets available at ending balance of Finished goods Inventory in March 2017 comes from-Total-Variable-Manufacturing Costs: and Fixed manufacturing costs allocated: (1,525 units from-March-2017-of-Data-Table] 1,530 units of sold-50-inch television sets in-March-2017-(budgeted-sales-and-actual-sales of 1,530 units of 50-inch television sets) from Budgeted-(Planned) Net (Total) Sales Revenue:- [1.530 units-from-Data-Table] 1 =-100 units -at-beg. Balance of WIP-Inventory +-1,525 units of budgeted production of 50-inch- television sets --1,525 units of sold-50-inch television-sets 1 =:(100+1,525--1,530 1 =-1,625-1,5301 1 =-95. Completed 1 *The-95 units of the 50-inch television sets that TV-Plus Corporation they produced (made) represents the inventory amount of, "Completed (Produced) and Transferred to finished goods (or-Cost-of goods manufactured)", the right side of the account called Work-in-process inventory, and, "Transferred in-from-Work-in-process inventory" (or-Cost of goods- manufactured), the left side of the account called Finished goods-inventory. However, the-board- of directors of TV Plus Corporation are planning to order the production-of-1,525 units of the 50- inch television sets. * *$900-Variable (Manufacturing cost per vehicle produced) [$900 from Data-Table] *$350-Budgeted fixed manufacturing cost per unit [$350 from Computation above] 1 =-$900+$3509 = $1,250. Completed 1 =-95 units x $1,2501 1 =-$118,750- Completed 1 V$118.750 represents the-95 units of a vehicle in the Ending inventory, also called ending dollar- balance of Finished goods-Inventory, for February 2017, in dollars. The-ending balance of Work-in-process inventory and/or Finished-goods inventory is to be multiplied with $1,250 per-50-inch television-set (unit) for the allocation of variable-and-fixed- manufacturing cost per-50-inch television-set (unit). --The fixed manufacturing cost-is-for- budgeted-level of production. Hence, adjustment is to be made in the month of May for variance in volume of production for the fixed manufacturing overhead-cost. I [Method #1]1 1 Adjustment for production volume variance: 1 *1,450 units of budgeted-(planned) production-of-50-inch television sets and/or produced-50-inch- television sets available at Ending inventory, also called ending balance of Finished-goods- Inventory, in-February 2017. [1.450 units from Data-Table] *1,525 units of budgeted-(planned) production of 50-inch television sets and/or produced-50-inch- television sets available-at-Ending inventory, also called ending balance of Finished goods Inventory, in-March-2017. [1,525 units from-Data-Table] 1 Adjustment for production volume variance Formula 1 =-Units of production of previous month - Units of production of current month 1 =-Adjustment for production volume variance =-1,450-1,5251 1 =-75. Computed =-75-x-$350 is Budgeted-fixed manufacturing (of cost per 50-inch television set [$350-from Computation above) =-$38,500. Computed [Method #2]1 *$525.000 -is the Budgeted fixed manufacturing costs (Total-Budgeted fixed manufacturing costar $533.750 is the fixed manufacturing costs (total-fixed manufacturing costs) is allocated. [Computed above] 1 = $525,000-$533,7509 =-$8,7501 -$8,750-or ($8,750)-is-Adjustment for production volume variance for-March-2017.5 Because the budgeted-(planned) production-of-50-inch television sets decreased-from-1,525-50- inch television sets to-1,450-50-inch television sets and/or budgeted production-of-50-inch- television-sets-in-March-2017-is-larger than the budgeted production of 50-inch television sets in March-2017, the-budgeted (planned) production-of-50-inch television-sets-in-March-2017-is- favorable. I E9-24 (similar to), TV Plus Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March 2017 are as follows: (Click the icon to view the actual data.) The selling price per unit is $3,400. 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. The variable manufacturing costs per unit of TV Plus Corporation are as follows: Click the icon to view the variable manufacturing cost data.) TV Plus prepared the following income statements under variable costing and absorption costing. (Click the icon to view the variable costing statement.) (Click the icon to view the absorption costing statement.) Read the requirements - X Data Table March 100 1,525 1,530 January February Unit data: Beginning inventory 0 100 Production 1,500 1,450 Sales 1,400 1,450 Variable costs: Manufacturing cost per unit produced $ 900 $ 900 $ Operating (marketing) cost per unit sold $ 650 $ 650 $ Fixed costs: Manufacturing costs 525,000 $ 525,000 $ Operating (marketing) costs $ 170,000 $ 170,000 $ 900 650 $ 525,000 170,000 * Absorption costing income statement January 2017 $ 4,760,000 February 2017 $ 4,930,000 March 2017 $ 5,202,000 1,350,000 525,000 $ 125,000 1,305,000 507,500 1937,500 (125,000) $ 125,000 1,372,500 533,750 2,031.250 (118,750) 1,875,000 (125,000) 17,500 u (8,750) F Revenues Cost of goods sold Beginning inventory Variable manufacturing costs Allocated fixed manufacturing costs Cost of goods available for sale Less Ending inventory Adj, for production-volume variance Cost of goods sold Gross margin Operating costs Variable operating costs Fixed operating costs Total operating costs Operating income 1.750,000 1,830,000 3,100,000 1.903.750 3.298,250 3,010,000 910,000 170,000 942,500 170,000 994,500 170,000 1,080,000 1.112.500 1.164.500 $ 2,133,750 $ 1.930,000 $ 1,987.500 i Requirements 1. Prepare income statements for TV Plus in January, February, and March 2017 under throughput costing. 2. Contrast the results in requirement 1 with the operating income results under variable costing and absorption costing. 3. Give one motivation for TV Plus to adopt throughput costing. Budgeted-fixed manufacturing (in cost per unit: *525,000 is-Fixed manufacturing costs (Total-Fixed Manufacturing cost). I *1,500-is Budgeted (Planned) Production units-of-50-inch television sets. [1,500 from January 2017-of-Data-Table] 1 Before preparing the income statements we need to calculate the budgeted (planned) fixed manufacturing cost per unit --This is the amount of fixed manufacturing costs (expenses) that we will allocate to each unit produced. Let's calculate the-fixed manufacturing cost per unit now. 1 Budgeted fixed manufacturing. (mfg) cost per unit-Formula 1 Budgeted fixed manufacturing costs Budgeted production =Budgeted-fixed manufacturing (mfg) cost per unit $525,000 Budgeted fixed manufacturing costs 1,500 Budgeted production 1 =-$350. Completed =-$350-is-Budgeted fixed manufacturing (now cost per unit I will need to allocate (assign, apply) the budgeted-(planned) fixed manufacturing costs to the units they produced. --Let's do this for both now.f 1 Allocated fixed manufacturing costs Formula = Budgeted fixed manufacturing cost per unit-x-Units produced =-Allocated fixed manufacturing costs =-$350-x-1,525 units of the-50-inch television produced [1,525 units produced From Data-Table- for-March-2017] = $533,750. Completed V$533,750 is the fixed manufacturing costs that are allocated to a total of 1.525 50-inch- television sets produced in the period (March-2017). [For-Requirement-2]1 V$350 is Budgeted-fixed manufacturing cost per unit is allocated to each unit of a product(e.g.. vehicle) out of 1,525 units of 50-inch television sets produced in the period (March-2017). Total-Variable-Manufacturing Costs: 1 *$900 Variable (Manufacturing cost per vehicle produced) [S900-from-Data-Table] *1,525 units of budgeted-(planned) production-of-50-inch television sets and/or produced vehicles available at ending balance of Inventory in-May-2017 = $900-x-1,525 units of budgeted (planned) production-of-50-inch television sets and/or produced v50-inch television sets available at-ending balance of Inventory in-May-20179 = $1,372,500-V Completed $1,372,500 is the Total Variable-Manufacturing Cost. I Beginning-Inventory (Beginning balance of account called Finished goods Inventory): 1 100 units of 50-inch television sets at the beginning balance of Finished goods Inventory. I V$900-Variable (Manufacturing cost per-50-inch television-set produced) [$900 From-Data Table] V$350-is-Budgeted-fixed manufacturing (motion cost per unit. [$350-from-Part:B of Requirement 11 Manufacturing overhead costs"(Total Manufacturing overhead cost).Formula =-Variable (Manufacturing cost per unit) +-Budgeted fixed manufacturing (mincost per unit =-Manufacturing-overhead-costs-(Total-Manufacturing overhead-cost) = $900+$3501 = $1,250-V Completed = $1,250-x-100-50-inch television sets at the beginning balance of Finished-goods-Inventory =-$125,000- Completed $125,000 -is the beginning balance and/or dollar value for the 100 number of 50-inch television sets representing the Cost of goods manufactured portion of the account called Finished goods Inventory and cost-of goods manufactured portion of the account called-Finished-goods inventory. I Cost of goods available for sale:1 $125,000-is the dollar value for the 100 number of 50-inch television sets representing the Cost- of goods manufactured portion of the account called-Work-in-Process-Inventory-and-Cost of goods manufactured portion of the account called-Finished-goods-inventory. I 1 $1,372,500 is the Total Variable-Manufacturing Cost. $533,750-is the fixed manufacturing costs (total fixed manufacturing costs is allocated. [For Requirement 2]1 Cost-of goods available for sale Formula =Beginning-Inventory (Beginning balance of Finished goods inventory)+-Total Manufacturing Overhead-costs-or-Total-cost-(Total-Variable Manufacturing Cost) +- Fixed manufacturing costs- allocated:(total fixed manufacturing costs) =-Cost of goods available for sale =-$125,000+$1,372,500+ $533.7509 =-$2.031,250. Completed $2,031,250-is the-Cost-of goods available for sale. I Ending Inventory (Ending balance of account called Finished goods Inventory): 1 100 number of 50-inch television-sets representing Beginning-Inventory and/or at the beginning balance of Finished goods-Inventory in-March-2017. [100 units-from-Data-Table] 1,525 units of budgeted-(planned) production-of-50-inch television sets and/or produced-50-inch- television sets available at ending balance of Finished goods Inventory in March 2017 comes from-Total-Variable-Manufacturing Costs: and Fixed manufacturing costs allocated: (1,525 units from-March-2017-of-Data-Table] 1,530 units of sold-50-inch television sets in-March-2017-(budgeted-sales-and-actual-sales of 1,530 units of 50-inch television sets) from Budgeted-(Planned) Net (Total) Sales Revenue:- [1.530 units-from-Data-Table] 1 =-100 units -at-beg. Balance of WIP-Inventory +-1,525 units of budgeted production of 50-inch- television sets --1,525 units of sold-50-inch television-sets 1 =:(100+1,525--1,530 1 =-1,625-1,5301 1 =-95. Completed 1 *The-95 units of the 50-inch television sets that TV-Plus Corporation they produced (made) represents the inventory amount of, "Completed (Produced) and Transferred to finished goods (or-Cost-of goods manufactured)", the right side of the account called Work-in-process inventory, and, "Transferred in-from-Work-in-process inventory" (or-Cost of goods- manufactured), the left side of the account called Finished goods-inventory. However, the-board- of directors of TV Plus Corporation are planning to order the production-of-1,525 units of the 50- inch television sets. * *$900-Variable (Manufacturing cost per vehicle produced) [$900 from Data-Table] *$350-Budgeted fixed manufacturing cost per unit [$350 from Computation above] 1 =-$900+$3509 = $1,250. Completed 1 =-95 units x $1,2501 1 =-$118,750- Completed 1 V$118.750 represents the-95 units of a vehicle in the Ending inventory, also called ending dollar- balance of Finished goods-Inventory, for February 2017, in dollars. The-ending balance of Work-in-process inventory and/or Finished-goods inventory is to be multiplied with $1,250 per-50-inch television-set (unit) for the allocation of variable-and-fixed- manufacturing cost per-50-inch television-set (unit). --The fixed manufacturing cost-is-for- budgeted-level of production. Hence, adjustment is to be made in the month of May for variance in volume of production for the fixed manufacturing overhead-cost. I [Method #1]1 1 Adjustment for production volume variance: 1 *1,450 units of budgeted-(planned) production-of-50-inch television sets and/or produced-50-inch- television sets available at Ending inventory, also called ending balance of Finished-goods- Inventory, in-February 2017. [1.450 units from Data-Table] *1,525 units of budgeted-(planned) production of 50-inch television sets and/or produced-50-inch- television sets available-at-Ending inventory, also called ending balance of Finished goods Inventory, in-March-2017. [1,525 units from-Data-Table] 1 Adjustment for production volume variance Formula 1 =-Units of production of previous month - Units of production of current month 1 =-Adjustment for production volume variance =-1,450-1,5251 1 =-75. Computed =-75-x-$350 is Budgeted-fixed manufacturing (of cost per 50-inch television set [$350-from Computation above) =-$38,500. Computed [Method #2]1 *$525.000 -is the Budgeted fixed manufacturing costs (Total-Budgeted fixed manufacturing costar $533.750 is the fixed manufacturing costs (total-fixed manufacturing costs) is allocated. [Computed above] 1 = $525,000-$533,7509 =-$8,7501 -$8,750-or ($8,750)-is-Adjustment for production volume variance for-March-2017.5 Because the budgeted-(planned) production-of-50-inch television sets decreased-from-1,525-50- inch television sets to-1,450-50-inch television sets and/or budgeted production-of-50-inch- television-sets-in-March-2017-is-larger than the budgeted production of 50-inch television sets in March-2017, the-budgeted (planned) production-of-50-inch television-sets-in-March-2017-is- favorable