The income statement of Company N for April and May 2017 under throughput costing.

Step 1. To determine: To prepare the income statement of Company N for April and May 2017 under throughput costing. Step 2. Explanation: Throughput Costing: A costing approach that considers only direct material as the cost attributable to inventory is called throughput costing. It is based on the concept that only the raw materials used for production are variable costs, while all other costs are considered fixed costs. Step 3. To determine: To explain the difference in the operating income as per throughput costing and as per variable and absorption costing. Step 4. To determine: To identify one benefit for Company N to use throughput costing.