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Throughput Costing – Nascar Motors

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September 23rd, 2022

The variable manufacturing costs per unit of Nascar Motors are:

April May
Direct material costs per unit. $6,700 $6,700
Direct manufacturing labor costs per unit. 1,500 $1,500
Manufacturing overhead costs per unit. 1,800 $1,800

Required

1. Prepare income statements for Nascar Motors in April and May of 2006 under throughput costing.
2. Contrast the results in requirement 1 with those in requirement 1 of Exercise 9-16.
3. Give one motivation for Nascar Motors to adopt throughput costing.
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Please see attached Word document for a full problem description.

Thank you!

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