Question

Where there is a ? mark, there needs to be a formula (+B15-B5) Thanks!

A 1 Chapter 6: Applying Excel 2 $50 $11 3 Data 4 Selling price per unit 5 Manufacturing costs: 6 Variable per unit produced: 7 Direct materials 8 Direct labor 9 Variable manufacturing overhead 10 Fixed manufacturing overhead per year 11 Selling and administrative expenses: 12 Variable per unit sold 13 Fixed per year $6 $120,000 $70,000 14 15 Year 1 Year 2 16 Units in beginning inventory 17 Units produced during the year 10,000 6,000 18 Units sold during the year 8,000 8,000 19 20 Enter a formula into each of the cells marked with a ? below 21 Review Problem 1: Contrasting Variable and Absorption Costing 22 23 Compute the Ending Inventory 24 Year 1 Year 2 25 Units in beginning inventory 26 Units produced during the year

Answer 1

	A	B	C	E	F
1
2
3	Data
4	selling price per unit	50
5	manufacturing cost
6	variable per unit produced
7	direct materials	11
8	direct labor	6
9	variable manufacturing overhead	3
10	fixed manufacturing overhead per year	120000
11	selling and administrative expenses
12	variable per unit sold	4
13	fixed per year	70000
14
15		year 1 ($)	year 2($)
16	units in beginning inventory	0
17	units produced during year	10000	6000
18	unit solld during year	8000	8000
19
20
21	contrasting variable and absorption costing
22
23	compute ending inventory
24		year 1 ($)	year 2($)
25	units in beginning inventory	0	2000
26	units produced during year	= C17	=D17
27	unit sold during year	=C18	=D18
28	units in ending inventory	=C25+C26-C27	=D25+D26-D27
29
30	compute absorption costing unit product cost
31		year 1 ($)	year 2($)
32	direct material	=C7	=C7
33	direct labor	= B8	= B8
34	variable manufacturing overhead	= B9	= B9
35	fixed manufacturing overhead	=B10/B17	=B10/C17
36	absorption costing unit product cost	=SUM(C33:C36)	=SUM(D33:D36
37
38	construct absorption costing income statement
39		year 1 ($)	year 2($)
40	sales	=B4*B18	=B4*B18
41	cost of goods sold	=B18*C37	=C18*D37
42	gross margin	=C41-C42	=D41-D42
43	selling and admin expenses	=B13+B12*B18	=B13+B12*C18
44	net operating income	=C43-C44	=D43-D44
45
46	compute variable costing unit product cost
47		year 1 ($)	year 2($)
48	direct material	=B7	=B7
49	direct labor	=B8	=B8
50	variable manufacturing overhead	=B9	=B9
51	variable costing unit product cost	= SUM(C49:C51)	=SUM(D49:D51)
52
53	construct variable costing income statement
54		year 1 ($)		year 2 ($)
55	sales		=B4*B18		=B4*B18
56	variable expenses
57	variable cost of goods sold	= C51*B18		= D51*C18
58	variable selling and admin expenses	=B18*B12	=C58+C59	=C18*B12	=SUM(E58:E59)
59	contribution margin		=D56-D59		=F56-F59
60	fixed expenses
61	fixed manufacturing expenses	=B10		=B10
62	fixed selling and admin expense	=B13	=C62+C63	=B13	=SUM(E62:E63)
63	net operating income		=D60-D63		=F60-F63