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. If it isn?t, check cell C41. The formula in this cell should be =IF(C26 qattachments_6f60b2a9c1a627d8a7ba95305d5d7614b7b18b08.xlsx Chapter 5: Applying Excel Data Selling price per unit Manufacturing costs: Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable per unit sold Fixed per year $50 $11 $6 $3 $120,000 $4 $70,000 Year 1 Units in beginning inventory Units produced during the year Units sold during the year Year 2 0 10,000 8,000 6,000 6,000 Enter a formula into each of the cells marked with a ? below Review Problem 1: Contrasting Variable and Absorption Costing Compute the Ending Inventory Year 1 0 10,000 8,000 2,000 Year 2 2,000 6,000 6,000 2,000 Compute the Absorption Costing Unit Product Cost Year 1 Direct materials $11 Direct labor 6 Variable manufacturing overhead 3 Fixed manufacturing overhead 12 Absorption costing unit product cost $32 Year 2 $11 6 3 20 $49 Units in beginning inventory Units produced during the year Units sold during the year Units in ending inventory Construct the Absorption Costing Income Statement Changed Year 1 Year 2 Year 2 Sales $ 400,000 $ 300,000 $ 300,000 Cost of goods sold 256,000 358,000 240,000 Gross margin 144,000 (58,000) 60,000 Selling and administrative expenses 102,000 94,000 94,000 Net operating income $ 42,000 $ (152,000) $ (34,000) Compute the Variable Costing Unit Product Cost Year 1 Direct materials $11 Direct labor 6 Variable manufacturing overhead 3 Variable costing unit product cost $20 Year 2 $11 6 3 $20 Construct the Variable Costing Income Statement Sales Variable expenses: Year 1 $ 400,000 Page 1 Year 2 $ 400,000 qattachments_6f60b2a9c1a627d8a7ba95305d5d7614b7b18b08.xlsx Variable cost of goods sold $ 160,000 Variable selling and administrative expenses 32,000 192,000 Contribution margin 208,000 Fixed expenses: Fixed manufacturing overhead $120,000 Fixed selling and administrative expenses $70,000 $190,000 Net operating income $ 18,000 Page 2 $160,000 24,000 $120,000 $70,000 $184,000 $ 216,000 $ 120000 24,000 $190,000 $ 26,000 $ $120,000 70,000 qattachments_6f60b2a9c1a627d8a7ba95305d5d7614b7b18b08.xlsx Changed 300000 Page 3 qattachments_6f60b2a9c1a627d8a7ba95305d5d7614b7b18b08.xlsx $ $ 144,000 156,000 $190,000 $ (34,000) Page 4