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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.

    © BrainMass Inc. brainmass.com June 3, 2020, 9:14 pm ad1c9bdddf
    https://brainmass.com/business/accounting/income-statement-throughput-costing-nascar-motors-172243

    Solution Summary

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

    $2.19

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