0 Required Information Chapter 7: Applying Excel: Excel Worksheet (Algo) (Part 1 of 2) Step 1 Download the Applying Excel form bocated on the den hadde under led, you have trouble, the file is also located in D2L under Course Files and Resources Step 2: Then enter formulas in nil cells that contain question marks. For example, in cel 826 enter the formula-817. After entering formules in all the cells that contained question marks,verly that the dollar amounts match the numbers in Review Problem Step 3: The LIFO Inventory flow assumption is used throughout the problem. Check your worksheet by changing the units sold in the Data to 6,000 for Year 2. The cost of goods sold under absorption costing for Year 2 should now be $240.000 lt, check cell C41, The formula In this cell should be FC26-27.026C36+(C27-C26)*836,C27036). Y your worksheet is operating property, the net operating income under both absorption costing and variable costing should be $34.000 for Your 2. That is the loss in Year 2 is $34,000 under both methods. If you do not get these answers, find the error in your worksheet and correct them. Assume that the units produced in year 2 were sold first Step 4: Proceed to the requirements below only after completing your worksheet will be used to answer the following questions 2. Change all of the numbers in the data are of your worksheet so that it looks like this. c 5 362 S & 1 Chapter 6: Applying Excel 2 3 Data 4 Selling price per unit Manufacturing costs 6 Variable per unit produced 7 Direct materials 8 Direct labor 9 Variable manufacturing overhead 10 Fixed manufacturing overhead per you 11 Selling and administrative expenses: 12 Variable per unit sold 13 Faced per year 14 15 16 Units in beginning inventory 17 Units produced during the year 18 Units sold during the year $ $ $ 5 526 70 20 173.500 $ 5 100.000 Yew Year 2 0 3.100 2.900 2.800 2.900 If your formulas are correct, you should get the correct answers to the following questions fa) What is the net operating income foss) in Year under absorption costing (b) What is the net operating income (loss) in Year 2 under absorption costing? (c) What is the net operating Income (loss) in Year 1 under variable costing? (d) What is the net operating income foss) in Year 2 under variable costing? (e) The net operating income foss) under absorption costing is less than the net operating income foss) under variable costing in Year 2 because: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any bones left with a question mark will be automatically graded as incorrect.) Units were left over from the previous year The cost of goods sold is always less under able conting trader absorption conting Sales exceeded production to some of the manufacturing overhead the period was released from inventories underborn costa 3. Make a note of the absorption costing net operating income (loss) in Year 2. At the end of Year 1, the company's board of directors set a target for Year 2 of net operating income of $140,000 under absorption costing. If this target is met , a hefty bonus would be paid to the CEO of the company. Keeping everything else the same from part (2) above change the units produced in Year 2 to 5,600 units. (a) Would this change result in a bonus being paid to the CEO? Yes No (b) What is the net operating income (oss) in Year 2 under absorption costing? (c) Would this doubling of production in Year 2 be in the best interests of the company if sales are expected to continue to be 2.900 units per year? Yes No