1 Chapter 6: Applying Excel 2 3 Data 4 Selling price per unit 5 Manufacturing costs: 6 Variable per unit produced 7 Direct materials 8 Direct labor 9 10 Variable manufacturing overhead Fixed manufacturing overhead per year 11 Selling and administrative expenses: Variable per unit sold Fixed per year 12 13 14 15 16 Units in beginning inventory 17 Units produced during the year 18 Units sold during the year 19 $50 $11 $6 $3 $120,000 $4 $70,000 Year 1 Year 2 0 10,000 6,000 8,000 8,000 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 25 Units in beginning inventory 26 Units produced during the year 27 Units sold during the year 28 Units in ending inventory 29 Year 1 Year 2 0 2,000 10,000 6,000 8,000 8,000 2,000 0 Year 1 ear 2 $11 $11 6 6 3 3 12 20 $32 $40 Year 1 $ 400,000 256,000 144,000 Year 2 $ 400,000 304,000 96,000 102,000 102,000 $ 42,000 $(6,000) 30 Compute the Absorption Costing Unit Product Cost 31 32 Direct materials 33 Direct labor 34 Variable manufacturing overhead 35 Fixed manufacturing overhead 36 Absorption costing unit product cost 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 46 Compute the Variable Costing Unit Product Cost 47 48 Direct materials 49 Direct labor 50 Variable manufacturing overhead 51 Variable costing unit product cost 52 53 Construct the Variable Costing Income Statement 54 55 Sales 56 Variable expenses: Variable cost of goods sold Year 1 Year 2 $11 $11 6 6 3 3 $20 $20 D E F G H Year 1 Year 2 $ 400,000 $ 400,000 57 $ 160,000 58 Variable selling and administrative expenses 32,000 59 Contribution margin 192,000 208,000 $160,000 32,000 $192,000 208,000 60 Fixed expenses: 61 Fixed manufacturing overhead $120,000 62 Fixed selling and administrative expenses $70,000 $190,000 $120,000 $70,000 $190,000 63 Not operating income $ 18,000 $18,000 64 65