OFF AutoSave Insert 5 Page Layout Home Formulas Data Lab 6 - Chapter 19 - ACC 214 Review View 0 % Conditional Formatting Format as Table Cell Styles 12V AA = = E D lavar Number E32 x > Name: 1 ACC 214 Lab #6: Chapter 19 3 Information for the Lotus Computer Company for 2019: 5 Expected sales of computer workstation furniture: 300 units @ $3,200 per unit 7 Expected manufacturing costs include the following: 8 Direct Materials $ 800 per unit 9 Direct Labor $ 400 per unit 10 Variable Overhead $ 100 per unit 11 Fixed Overhead 24,000 per year 12 13 Expected selling expenses include the following: 14 Variable Selling Expenses $ 50 per unit 15 Fixed Selling Expenses $ 4,000 per year 17 Los 17 Lotus' management is considering how many workstations to produce in 2019. The management team is confident that all workstations 18 remaining in the 2019 ending inventory will be sold in 2020. However, the management team does not want to overproduce as the 19 company does not have sufficient storage space for many more workstations. 21 Requirement: 23 Parts 1 & 2: Assume 300 workstations a 25 Part 1: Create an A) Absorption Costing Income Statement and a B) Variable Costing Income Statement assuming 300 workstations are produced Lotus Computer Company Income Statement (Absorption Costing) Forecasted for Year Ended 2019 Sheet1 + Lotus Computer Company Income Statement (Variable Costing) Forecasted for Year Ended 2019 Lab 6 - Chapter 19 - ACC 214 Review View Data o AutoSave OFF S U Home Insert Draw Page Layout Formulas Anh Arial ATAU 12 JA A Paste BI U Eva A E32 x fx 1 ACC 214 Lab #6: Chapter 19 Conditional Formatting Format as Table Cell Styles Number K L M Name: 3 Information for the Lotus Computer Company for 2019: 5 Expected sales of computer workstation furniture: 300 units @ $ 3,200 per unit 7 Expected manufacturing costs include the following: 8 Direct Materials 800 per unit 9 Direct Labor 400 per unit 10 Variable Overhead 100 per unit 11 Fixed Overhead 24,000 per year 12 13 Expected selling expenses include the following: 14 Variable Selling Expenses 50 per unit 15 Fixed Selling Expenses 4,000 per year 16 17 Lotus' management is considering how many workstations to produce in 2019. The management team is confident that all workstations 18 remaining in the 2019 ending inventory will be sold in 2020. However, the management team does not want to overproduce as the 19 company does not have sufficient storage space for many more workstations. 21 Requirement: Parts 1 & 2: Assume 300 workstations are sold. 25 Part 1: Create an A) Absorption Costing Income Statement and a B) Variable Costing Income Statement assuming 300 workstations are Lotus Computer Company Income Statement (Absorption Costing) Forecasted for Year Ended 2019 Sheet1 Lotus Computer Company Income Statement (Variable Costi Forecasted for Year Ended 2011 SH AutoSave OFF s u Home Insert Draw Page Layout Lot Arial 12 & BI UV Erl A fx Lab 6 - Chapter 19 - ACC 214 Formulas Data Review View AA == 0 Conditional Formatting EB 13 Format as Table A Number Cell Styles calls Cells Editing L M N O 21 Requirement: 22 23 Parts 1 & 2: Assume 300 workstations are sold. B) Variab le Costing Income Statement assuming 300 workstations are produced B) 25 Part 1: Create an A) Absorption Costing Income Statement and a 26 27 A) 28 Lotus Computer Company Income Statement (Absorption Costing) Forecasted for Year Ended 2019 Lotus Computer Company Income Statement (Variable Costing) Forecasted for Year Ended 2019 Net Income 45 Part 2: Create an A) Absorption Costing Income Statement and a B) Variable Costing Income Statement assuming 320 workstations are produced. 46 47 A) Lotus Computer Company Lotus Computer Company Income Statement (Absorption Costing) Income Statement (Variable Costing) 50 Forecasted for Year Ended 2019 Forecasted for Year Ended 2019 Sheet1 + AutoSave OFF U = Lab 6 - Chapt Home Insert Draw Page Layout Formulas Data Review Vie AA === av Arial 12 LUI BI U Av v E32 x fx D E F G H I 21 Requirement: 23 Parts 1 & 2: Assume 300 workstations are sold. 25 Part 1: Create an A) Absorption Costing Income Statement and a B) Variable Costing Income 27 A) Lotus Computer Company Income Statement (Absorption Costing) Forecasted for Year Ended 2019 Net Income 45 Part 2: Create an A) Absorption Costing Income Statement and a B) Variable Costing Income Sta Lotus Computer Company Income Statement (Absorption Costing) Forecasted for Year Ended 2019 Sheet1 + 6.58 GB * Data Window Help Lab 6 - Chapter 19 - ACC 214 ta Review View = = = Conditional Formatting Format as Table Number Cell Styles Share Cells Editing Ideas GH NO 3) Variable Costing Income Statement assuming 300 workstations are produced. Lotus Computer Company Income Statement (Variable Costing) Forecasted for Year Ended 2019 Net Income a B) Variable Costing Income Statement assuming 320 workstations are produced Lotus Computer Company Income Statement (Variable Costing) Forecasted for Year Ended 2019 UUS UU UURIG Home Sha AutoSave OFF svu Insert Draw Page Layout Formulas Arial 12 A A BI U SA Data = Lab 6 - Chapter 19 - ACC 214 Review View = 2 0/ Conditional Formatting Format as Table Cell Styles Paste Number Cells Editing E32 E F G H XS 45 Part 2: Create an A) Absorption Costing Income Statement and a B) Variable Costing Income Statement assuming 320 workstations are produced 47 A) Lotus Computer Company Income Statement (Absorption Costing) Forecasted for Year Ended 2019 Lotus Computer Company Income Statement (Variable Costing) Forecasted for Year Ended 2019 Net Income 65 Part 3: Comment on which costing method, absorption or variable, yields the highest net income when 320 workstations are produced and 300 are sold. Sheet1 Lab 6 - Chapter 19 - Review View Finder File Edit View Go Window Help AutoSave OFF svo Home Insert Draw Page Layout Formulas Data Arial ~ 12 A Paste BIVA E32 x V fx 3 70 Number 45 Part 2: Create an A) Absorption Costing Income Statement and a B) Variable Costing Income Stateme 47 A) Lotus Computer Company Income Statement (Absorption Costing) Forecasted for Year Ended 2019 Net Income Net Inco 65 Part 3: Comment on which costing method, absorption or variable, yields the highest net income when 31 Sheet1 + 6.69 GB 52% Share Com Data = Lab 6 - Chapter 19 - ACC 214 Review View = % conditional Formatting Format as Table Number Cell Styles O L Cells Editing Ideas Sen M N O P Q a B) Variable Costing Income Statement assuming 320 workstations are produced. Lotus Computer Company Income Statement (Variable Costing) Forecasted for Year Ended 2019 Net Income ariable, yields the highest net income when 320 workstations are produced and 300 are sold - + 100 6.67 GB 3 Finder File Edit View Go Window Help ... AutoSave Suu- Lab 6 - Chapter 19 - ACC 214 Home Insert Draw Page Layout Formulas Data Review View Arial 12 AA 3=32 % Conditional Formatting 3 Format as Table Paste & B I Ur Ivavar Cell Styles E32 x fx L HOM % cels Editing 1 M N O ON Net Income Net Income 5 Part 3: Comment on which costing method, absorption or variable, yields the highest net income when 320 workstations are produced and 300 are sold. w Non 3 Part 4: Comment on potential ethical issues faced by management when inventory is expected sales. no No Sheet1