Chapter 21 Using Excel P21-37 Using Excel for Variable Costing Tiger Mountain Gelato incurs the following costs for its premium ice cream in May 2018: DATA Tiger Mountain Gelato incurs the following costs for its premium ice cream in May 2018: Direct materials cost per pint 2.50 per pint Direct labor cost per pint 0.75 per pint Variable manufacturing overhead cost per pint 0.25 per pint Fixed manufacturing overhead costs 6,000 per month Total fixed selling and administrative costs 5,000 per month Sales price per pint 8.00 per pint Pints of gelato produced 12,000 pints Pints of gelato sold 11,500 pints There were no beginning inventories, so Tiger Mountain Gelato has 500 pints in ending Finished Goods Inventory (12,000 pints produced - 11,500 pints sold). Requirements: 1. Calculate Tiger Mountain Gelato's product cost per pint under absorption costing and variable costing. 2. Calculate the balance in Finished Goods Inventory on May 31, 2018, using absorption costing and variable costing. 3. Prepare income statements in good form for Tiger Mountain Gelato for May 2018 using absorption costing and variable costing. 4. Reconcile the differences between operating incomes and Finished Goods Inventory balances between the two costing methods. Excel Skills: Use data validation to select descriptions. Create formulas with cell references. Format the cells appropriately for dollars, numbers, or units. Use the ABS function (absolute value) in a formula. DATA Tiger Mountain Gelato incurs the following costs for its premium ice cream in May 2018: Direct materials cost per pint $ 2.50 per pint Direct labor cost per pint 0.75 per pint Variable manufacturing overhead cost per pint 0.25 per pint Fixed manufacturing overhead costs 6,000 per month Total fixed selling and administrative costs 5,000 per month Sales price per pint 8.00 per pint Pints of gelato produced 12,000 pints Pints of gelato sold 11,500 pints There were no beginning inventories, so Tiger Mountain Gelato has 500 pints in ending Finished Goods Inventory (12,000 pints produced - 11,500 pints sold). Requirement 1 Calculate Tiger Mountain Gelato's product cost per pint under absorption costing and variable costing. Use the selections in the drop-down menu to select the correct description. Use cell references to point to the correct unit or dollar amount from the data table. Absorption Costing Variable Costing Requirement 2 Calculate the balance in Finished Goods Inventory on May 31, 2018, using absorption costing and variable costing. Use cell references to point to the units produced and the units sold. Beginning Inventory in units Units produced Units available for sale Units sold Ending Inventory in units Use cell references to point to the correct product cost. Absorption Costing Variable Costing Ending inventory in units Product cost per unit Balance in Finished Goods Inventory Requirement 3 Prepare Income statements in good form for Tiger Mountain Gelato for May 2018 using absorption costing and variable costing. Use the selections in the drop-down menu to select the correct description. Use cell references in the formula to point to the selling price per unit, product cost per unit, and units sold from the data table. Indent the descriptions for any subtotals using the Increase Indent button. Double underline operating income. Absorption Costing Variable Costing Requirement 4 Reconcile the differences between operating incomes and Finished Goods Inventory balances between the two costing methods. Use cell references to point to the correct amounts. Use the ABS function (absolute value) to calculate the difference between Operating Income and Finished Goods Inventory. Absorption Costing Variable Costing Difference Chapter 21 Using Excel P21-37 Using Excel for Variable Costing Tiger Mountain Gelato incurs the following costs for its premium ice cream in May 2018: DATA Tiger Mountain Gelato incurs the following costs for its premium ice cream in May 2018: Direct materials cost per pint 2.50 per pint Direct labor cost per pint 0.75 per pint Variable manufacturing overhead cost per pint 0.25 per pint Fixed manufacturing overhead costs 6,000 per month Total fixed selling and administrative costs 5,000 per month Sales price per pint 8.00 per pint Pints of gelato produced 12,000 pints Pints of gelato sold 11,500 pints There were no beginning inventories, so Tiger Mountain Gelato has 500 pints in ending Finished Goods Inventory (12,000 pints produced - 11,500 pints sold). Requirements: 1. Calculate Tiger Mountain Gelato's product cost per pint under absorption costing and variable costing. 2. Calculate the balance in Finished Goods Inventory on May 31, 2018, using absorption costing and variable costing. 3. Prepare income statements in good form for Tiger Mountain Gelato for May 2018 using absorption costing and variable costing. 4. Reconcile the differences between operating incomes and Finished Goods Inventory balances between the two costing methods. Excel Skills: Use data validation to select descriptions. Create formulas with cell references. Format the cells appropriately for dollars, numbers, or units. Use the ABS function (absolute value) in a formula. DATA Tiger Mountain Gelato incurs the following costs for its premium ice cream in May 2018: Direct materials cost per pint $ 2.50 per pint Direct labor cost per pint 0.75 per pint Variable manufacturing overhead cost per pint 0.25 per pint Fixed manufacturing overhead costs 6,000 per month Total fixed selling and administrative costs 5,000 per month Sales price per pint 8.00 per pint Pints of gelato produced 12,000 pints Pints of gelato sold 11,500 pints There were no beginning inventories, so Tiger Mountain Gelato has 500 pints in ending Finished Goods Inventory (12,000 pints produced - 11,500 pints sold). Requirement 1 Calculate Tiger Mountain Gelato's product cost per pint under absorption costing and variable costing. Use the selections in the drop-down menu to select the correct description. Use cell references to point to the correct unit or dollar amount from the data table. Absorption Costing Variable Costing Requirement 2 Calculate the balance in Finished Goods Inventory on May 31, 2018, using absorption costing and variable costing. Use cell references to point to the units produced and the units sold. Beginning Inventory in units Units produced Units available for sale Units sold Ending Inventory in units Use cell references to point to the correct product cost. Absorption Costing Variable Costing Ending inventory in units Product cost per unit Balance in Finished Goods Inventory Requirement 3 Prepare Income statements in good form for Tiger Mountain Gelato for May 2018 using absorption costing and variable costing. Use the selections in the drop-down menu to select the correct description. Use cell references in the formula to point to the selling price per unit, product cost per unit, and units sold from the data table. Indent the descriptions for any subtotals using the Increase Indent button. Double underline operating income. Absorption Costing Variable Costing Requirement 4 Reconcile the differences between operating incomes and Finished Goods Inventory balances between the two costing methods. Use cell references to point to the correct amounts. Use the ABS function (absolute value) to calculate the difference between Operating Income and Finished Goods Inventory. Absorption Costing Variable Costing Difference