Data
Selling price per unit	$50
Manufacturing costs:
Variable per unit produced:
Direct materials	$11
Direct labor	$6
Variable manufacturing overhead	$3
	$120,000
Variable per unit sold	$4
Fixed per year	$70,000
	Year 1	Year 2
Units in beginning inventory	0
Units produced during the year	10,000	6,000
Units sold during the year	8,000	8,000
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	Year 2
Units in beginning inventory	0	?
Units produced during the year	?	?
Units sold during the year	?	?
Units in ending inventory	?	?
Compute the Absorption Costing Unit Product Cost
	Year 1	Year 2
Direct materials	?	?
Direct labor	?	?
Variable manufacturing overhead	?	?
Fixed manufacturing overhead	?	?
Absorption costing unit product cost	?	?
Construct the Absorption Costing Income Statement
	Year 1	Year 2
Sales	?	?
Cost of goods sold	?	?
Gross margin	?	?
Selling and administrative expenses	?	?
Net operating income	?	?
Compute the Variable Costing Unit Product Cost
	Year 1	Year 2
Direct materials	?	?
Direct labor	?	?
Variable manufacturing overhead	?	?
Variable costing unit product cost	?	?
Construct the Variable Costing Income Statement
	Year 1		Year 2
Sales		?		?
Variable expenses:
Variable cost of goods sold	?		?
Variable selling and administrative expenses	?	?	?	?
Contribution margin		?		?
Fixed expenses:
Fixed manufacturing overhead	?		?
Fixed selling and administrative expenses	?	?	?	?
Net operating income		?		?