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Income Statement and Throughput Costing for Nascar Motors

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The variable manufacturing costs per unit of Nascar Motors are:

April May
Direct material cost per Unit $6,700 $6,700
Direct Manufacturing labor cost per unit 1,500 1,500
Manufacturing overhead cost per unit 1,800 1,800

1. Prepare income statements for Nascar Motors in April and May of 2006 under throughput costing.

2. Give one motivation for Nascar Motors to adopt throughput costing.

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Solution Summary

Word document attached uses throughput costing to look at NASCAR over two months and convince them to switch from variable costing.

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