Download the Applying Excel form and enter formulas in all cells that contain question marks. For example, in cell 826 enter the formula "B17" After entering formulas in all of the cells that contained question marks, verify that the dollar amounts match the numbers in Review Problem 1. The LIFO inventory flow assumption is used throughout the problem. 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-C27,C26 C36+(C27-C26) 836.C27C36).] If your worksheet is operating properly, the net operating income under both absorption costing and variable costing should be $(34,000) for Year 2. That is, the loss in Year 2 is $34,000 under both methods. If you do not get these answers, find the errors in your worksheet and correct them. Assume that the units produced in year 2 were sold first. Save your completed Applying Excel form to your computer and then upload it here by clicking "Browse." Next, click "Save." You will use this worksheet to answer the questions in Part 2. D using for free and enjoy more services. Chapter 6: Applying Excel Data Selling price per unit 5 Manufacturing costs: 8 9 10 1234567BANTERASSIES Variable per unit produced: Direct material Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year 11 Selling and administrative expenses: Variable per unit sold Fixed per year B $50 Free Use after Login $11 $6 $3 $120,000 $4 $70,000 Year 1 Year 2 0 10,000 6,000 18 Units sold during the year 8,000 8,000 19 20 21 Enter a formula into each of the cells marked with a ? below Review Problem 1: Contrasting Variable and Absorption Costing 22 16 Units in beginning inventory 17 Units produced during the year LU E 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 Year 1 Year 2 0 ? ? ? ? ? ? ? 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 Year 1 Year 2 ? 2 ? ? ? ? ? ? ? 2 F A B Year 1 0 Year 2 D ? 0??? ? ???? Year 1. Year 2 ? ? ? ? ? ? ? ? ? ? 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 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 Year 1 Year 2 ? ? ? ? ? ? ? ? ? 2 Year 1 Year 2 ? ? ? ? ? ? ? ? LU E LL F Year 1 Year 2 ? ? 56 Variable expenses: 57 Variable cost of goods sold 2 ? 58 Variable selling and administrative expenses 2 ? ? ? ? 59 Contribution margin 60 Fixed expenses: 61 Fixed manufacturing overhead ? ? ? ? ? ? 62 Fixed selling and administrative expenses 2 ? 63 Net operating income 64 65 Be K > Chapter 6 Form