Henkel Industries produces its product in two sequential departments: Blending and Forming. The old controller, who has just retired, has been manually preparing the production cost reports each month. The new controller would like you, as an intern, to develop an Excel production cost report for the month of MAY that will automatically calculate the cost per equivalent unit, etc., when the monthly information is dropped into Data area of the worksheet (the data area is shown as a blue box). The controller has provided you with a basic template, but needs to you finish the spreadsheet by adding formulas and cell references as needed. The only place she ever wants to type in numbers is in the blue box. Although there are two departments, the controller wants you to focus your attention on the Blending department until she is sure that your spreadsheet will provide accurate information.

Before you begin to formulate the May spreadsheet, you'll need to get production and cost data for the month of May. Some of the information can be found on last month's manually-prepared production cost report, while other pieces of information can be found in the May general ledger. In addition the production supervisor has already reported that 220,000 units were started during May and that 30,000 units were 80% of the way completed at the end of the month. During your initial plant tour, you found out that all of the direct materials were added at the very beginning of the Blending process.

STEP-BY-STEP INSTRUCTIONS

1) Fill in the information about units and percentages of completion in the May blue box. FORMAT percentages as percentages (not decimals).

2) Fill in the cost information in the May blue box. (Hint: Gather from April's cost report and from the General Ledger). FORMAT in DOLLARS (no cents). If you get a ######### it simply means your column is not wide enough (if so, drag and drop the cell line so that the cell is wider)

3) Use cell references and formulas to populate the production cost report. For example, in cell E4 you should type in the following reference: = B3. In cell E6 you should type in the following formula: = E4+E5. NOTE: DO NOT TYPE IN ANY NUMBERS. ALL CELLS SHOULD CONTAIN FORMULAS OR REFERENCES TO CELLS IN THE BLUE BOX.

4) Make sure all of the cost information is in dollars (use the dollar format button).

5) Clean up the spreadsheet formatting as necessary (for example, if anything is bold, change it back to regular font; get rid of unnecessary decimal places; align numbers properly, etc.)

6) Once you finish the production cost report, go to the "Additional Analysis" worksheet for additional requirements and directions.