Question

area of your worksheet so that it А B с Chapter 6: Applying Excel Data $ 344 $ 146 Selling price per unit Manufacturing costs: Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable per unit sold Fixed per year $ 72 $ 22 $ 83,600 $ 3 $ 34,000 Year 1 Year 2 0 Units in beginning inventory Units produced during the year Units sold during the year 2,200 1,900 2.000 2,000

find net operating income (loss) for year 1 under absorption costing

find net operating income (loss) for year 2 under absorption costing

find net operating income (loss) for year 1 under variable costing

find net operating income (loss) for year 2 under variable costing

Answer 1

B C 344 A 1 Applying Excel 2 3 Data 4 Selling Price per Unit 5 Manufacturing Costs 6 Variable pe rUnit Produced 7 Direct material 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 14 15 16 Units in beginning during the year 17 Units Produced During the year 18 Units Sold During the year 146 72 22 83600 3 34000 Year2 Year 1 0 2200 2000 1900 2000

21 Review Problem 1 : Constricting Variable and Absorption Costing 22 23 Compute the Ending inventory 24 Year 1 Year2 25 Units in beginning during the year 0 200 26 Units Produced During the year 2200 1900 27 Units Sold During the year 2000 2000 28 Units in Ending inventory 200 100 29 30 Compute the Absorption Costing Unit Product Per Unit 31 Year 1 Year2 32 Direct material 146 146 Direct labor 72 72 34 Variable Manufacturing overhead 22 22 35 Fixed Manufacturing overhead per year 38 44 36 Absorption Costing Units Per Product cost 278 284 33

39 A B C 37 38 Construct the Absorption costing Income Statement Year 1 Year2 40 Sales 688000 688000 41 Cost of Goods Sold 556000 566800 42 Gross Margin 132000 121200 43 Selling and Administrative Expenses 40000 40000 44 Net operating income 92000 81200 45 46 Compute the Variable costing Units Product Cost 47 Year 1 Year 2 48 Direct material 146 146 Direct labor 72 72 Variable Manufacturing overhead 22 22 51 Variable costing Units Product Cost 240 240 49 50 г

B C D E Year 1 146 72 22 240 Year 2 146 72 22 240 A 46 Compute the Variable costing Units Product Cost 47 48 Direct material 49 Direct labor 50 Variable Manufacturing overhead 51 Variable costing Units Product Cost 52 53 Construct the variable costing income Statement 54 55 Sales 56 Variable Expenses 57 Variable Cost of Goods Sold 58 Variable selling and Administrative Expenses 59 Contribution Margin 60 Fixed Expenses Fixed Manufacturing overhead 62 Fixed Selling and Administrative Expenses 63 Net operating income Year 1 688000 Year 2 688000 480000 6000 480000 6000 486000 202000 486000 202000 61 83600 34000 83600 34000 117600 117600 84400 84400

Excel Applications :

B С А 19 20 21 Review Problem 1: Constricting Variable and Absorption Costing 22 23 Compute the Ending inventory 24 25 =A16 26 =A17 27 =A18 28 Units in Ending inventory =B15 =B16 =B17 =B18 =B26-B27 =C15 =B28 =C17 =C18 =C25+C26-027 29 30 Compute the Absorption Costing Unit Product Per Unit 31 32 =A7 33 =A8 34 =A9 35 =A10 36 Absorption Costing Units Per Product cost =B24 =C24 =B7 =B32 =B8 =B33 =B9 =B34 =B10/B26 =B10/C17 =B32+B33+B34+B35 =C32+C33+C34+C35

B С =C25+C26-C27 =B26-B27 A 28 Units in Ending inventory 29 30 Compute the Absorption Costing Unit Product Per Unit 31 32 =A7 33 =A8 34 =A9 35 =A10 36 Absorption Costing Units Per Product cost =B24 =C24 =B7 =B32 =B8 =B33 B9 =B34 =B10/B26 =B10/C17 =B32+B33+B34+B =C32+C33+C34+C35 37 38 Construct the Absorption costing Income Statement 39 40 Sales 41 Cost of Goods Sold 42 Gross Margin 43 Selling and Administrative Expenses 44 Net operating income 45 =B31 =B4*B27 =B36*B27 =B40-B41 =B12 *B27+B13 =B42-B43 =C31 =B4*C27 =C25*B36+1800*C36 =C40-C41 =B12*C27+B13 =C42-C43

A B C D E 46 Compute the Variable costing Units Product Cost 47 Year 2 Year 1 =B7 =B8 =B9 =SUM(B48:B50) =B7 =B8 =B9 =SUM(C48:C50) Year 1 =B4*B18 Year 2 =B4*C18 48 =A32 49 =A33 50 =A34 51 Variable costing Units Product Cost 52 53 Construct the variable costing income Statement 54 55 Sales 56 Variable Expenses 57 Variable Cost of Goods Sold 58 Variable selling and Administrative Expenses 59 Contribution Margin 60 Fixed Expenses 61 Fixed Manufacturing overhead 62 Fixed Selling and Administrative Expenses 63 Net operating income =B51*B18 =B12*B18 =C51*C18 =B12*C18 =B57+358 =C55-C58 =D57+D58 =E55-E58 =B10 =B13 =B10 =B13 =B61+B62 =C59-C62 =D61+D62 =E59-E62