Spreadsheet Assignment Mastering Excel Stanley Manufacturing Company, which sold 16,000 units of product at $20 per unit, collected the following information regarding three different levels of production.

518 Chapter 11 Cash $200,000 Raw Materials Inventory 4,000 Work in Process Inventory 6,000 Finished Goods Inventory 7,000 Common Stock $129,000 Retained Earnings 88,000 Totals $217,000 $217,000 The subsidiary completed the following transactions during 2007.

1. Paid $60,000 cash for direct raw materials.

2. Transferred $50,000 of direct raw materials to work in process.

3. Paid production employees $80,000 cash.

4. Applied $53,000 of manufacturing overhead costs to work in process.

5. Completed work on products that cost $163,000.

6. Sold products that cost $143,000 for $182,000 cash. Record the recognition of revenue in a row labeled 6a and the cost of goods sold in a row labeled 6b.

7. Paid $20,000 cash for selling and administrative expenses.

8. Actual overhead costs paid in cash amounted to $55,000.

Inventory Costs Fixed overhead $100,000 $100,000 $100,000 Number of units produced 16,000 20,000 25,000 Fixed overhead per unit $6.25 $5.00 $4.00 Variable manufacturing costs $12.00 $12.00 $12.00 Full absorption cost per unit $18.25 $17.00 $16.00 Required

a. Construct a spreadsheet that includes the preceding data in the top of the spreadsheet. The rows for fixed overhead per unit and full absorption cost per unit should be based on formulas.

b. Include absorption costing income statements at these three levels of production like those in Exhibit 11.11. Use formulas so that the number of units produced in the preceding table can be changed and net income will be recalculated automatically.

c. Include variable costing income statements at these three levels of production like those in Exhibit 11.12. Use formulas so that the number of units produced in the preceding table can be changed and net income will be recalculated automatically