EXCEL CELL REFERENCE SOLUTION ONLY PLEASE

B C D E F G H 1 1 Operating data for Siesta Company and its absorption costing income statements for 2 the last two years are presented below: Required: What was the unit product cost in each year under variable costing 3 4 5 Year 1 Year 2 Year 1 Year 2 6 7 Units in beginning inventory Units produced Units sold 2,000 14,000 15,000 1,000 14,000 12,000 8 9 10 $ 240,000 $ 320,000 Total unit product cost 11 12 13 23,091 161,640 184,731 11,546 Sales Cost of Goods Sold Beginning inventory Add: Cost of Goods Manufactured Goods available for sale Less: Ending inventory Cost of Goods Sold Gross margin Selling and administrative expenses Operating income 11,546 161,640 173,186 34,637 b) Prepare new income statements for each year using variable costing. Siesta Company Variable Costing Income Statement 14 15 Year 1 Year 2 Sales Less: Variable expenses 16 17 18 19 173,186 66,814 89,000 (22,186) $ 138,549 181,451 81,200 100,251 $ 20 21 22 Fixed manufacturing overhead $ 62,100 $ 62.100 A E F G H 22 23 24 B Fixed manufacturing overhead Direct material per unit Direct labour per unit Variable Manufacturing overhead per unit Variable Selling & Admin costs per unit S $ S 62,100 $ 2.00 $ 3.00 $ 2.11 $ 2.60 $ D 62.100 2.00 3.00 2.11 2.60 Contribution margin S $ 25 26 27 28 29 Operating income (loss) c) Reconcile the difference in Operating Income between variable costing and absorption costing Variable costing operating income 30 31 32 33 34 35 36 37 38 39 40 41 42 Absorption costing operating income