2 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 Variable per unit sold $50 $11 $6 $3 $120,000 $70,000 38 54 12 13 Fixed per year 14 15 Year 1 Year 2 16 Units in beginning inventory 0 17 Units produced during the year 10,000 6,000 18 Units sold during the year 8,000 8,000 19 20 Entor a formula into each of the calls marked with a 7 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 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 Year 1 Year 2 0 2 7 ? 7 7 7 Year 1 Year 2 2 ? 7 7 ? ? 2 ? 2 Year 1 Year 2 2 2 2 9 " 7 7 ? 9 47 48 Direct materials 49 Direct labor 50 Variable manufacturing overhead Year 1 Year 2 ? 2 " 2 2 59 Contribution margin 60 Fixed expenses 51 Variable costing unit 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 61 Fixed manufacturing overhead Your 1 Year 2 7 7 2 2 7 7 ? ? ? 7 62 Fixed selling and administrative expenses 2 2 9 9 63 Net operating income 7 64 65 66 44 Chapter 6 Form +