Required information Chapter 6: Applying Excel (Algo) The Chapter 6 Form worksheet is to be used to create your own worksheet version of the Review Problem in the text. Chapter 6: Applying Excel: Excel Worksheet (Algo) (Part 1 of 2) Sownload the Applying Excel form and enter formulas in all cells that contain question marks. cor example, in cell B26 enter the formula =817. fter entering formulas in all of the cells that contained question marks, verify that the dollar amounts match the numbers in Review Problem 1. he 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 e $240,000. If it isn't, check cell C41. The formula in this cell should be w/F(C26cC27,C26' C36+(C27C26)B36,C27C36).) if your worksheet is operating roperly, 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 ear 2 were sold first. ave your completed Applying Excel form to your computer and then upload it here by clicking "Browse." Next, click "Save." You will use this orksheet to answer the questions in Part 2. Home Insert Draw Page Layout Formulas Data Review View Automate Q Tell me Enter a formula into each of the cells marked with a ? below Review Problem 1: Contrasting Variable and Absorption Costing Compute the Ending Inventory Chapter_6_Applying_Excel_Student_Form (1).xis Compute the Variable Costing Unit Product Cost Construct the Variable Costing Income Statement \begin{tabular}{l|l} Year 1 & Year 2 \\ \hline \end{tabular} 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 Required information Chapter 6: Applying Excel (Algo) The Chapter 6 Form worksheet is to be used to create your own worksheet version of the Review Problem in the text. Chapter 6: Applying Excel: Exercise (Algo) (Part 2 of 2) 2. Change all of the numbers in the data area of your worksheet so that it looks like this: If your formulas are correct, you should get the correct answers to the following questions. (a) What is the net operating income (loss) in Year 1 under absorption costing? (Loss amounts should be indicated with a minus sign.) (b) What is the net operating income (loss) in Year 2 under absorption costing? (Loss amounts should be indicated with a minus sign.) (c) What is the net operating income (loss) in Year 1 under variable costing? (Loss amounts should be indicated with a minus sign.) (d) What is the net operating income (loss) in Year 2 under variable costing? (Loss amounts should be indicated with a minus sign.) (e) The net operating income (loss) under absorption costing is less than the net operating income (loss) under variable costing in Year 2 because: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Units were left over from the previous yeac The cost of goods sold is always less under variable costing than under absorption costing. Soles exceeded production so some of the fixed manulacturing overticod of the period was released from inventories under absorption costing 3. Make a note of the absorption costing net operating income (loss) in Year 2. At the end of Year 1, the company's board of directors set a target for Year 2 of net operating income of $40,000 under absorption costing. If this target is met, a hefty bonus would be paid to the CEO of the company. Keeping everything else the same from part (2) above, change the units produced in Year 2 to 3,800 units. (a) Would this change result in a bonus being paid to the CEO? Yes No Required information Chapter 6: Applying Excel (Algo) The Chapter 6 Form worksheet is to be used to create your own worksheet version of the Review Problem in the text. Chapter 6: Applying Excel: Excel Worksheet (Algo) (Part 1 of 2) Sownload the Applying Excel form and enter formulas in all cells that contain question marks. cor example, in cell B26 enter the formula =817. fter entering formulas in all of the cells that contained question marks, verify that the dollar amounts match the numbers in Review Problem 1. he 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 e $240,000. If it isn't, check cell C41. The formula in this cell should be w/F(C26cC27,C26' C36+(C27C26)B36,C27C36).) if your worksheet is operating roperly, 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 ear 2 were sold first. ave your completed Applying Excel form to your computer and then upload it here by clicking "Browse." Next, click "Save." You will use this orksheet to answer the questions in Part 2. Home Insert Draw Page Layout Formulas Data Review View Automate Q Tell me Enter a formula into each of the cells marked with a ? below Review Problem 1: Contrasting Variable and Absorption Costing Compute the Ending Inventory Chapter_6_Applying_Excel_Student_Form (1).xis Compute the Variable Costing Unit Product Cost Construct the Variable Costing Income Statement \begin{tabular}{l|l} Year 1 & Year 2 \\ \hline \end{tabular} 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 Required information Chapter 6: Applying Excel (Algo) The Chapter 6 Form worksheet is to be used to create your own worksheet version of the Review Problem in the text. Chapter 6: Applying Excel: Exercise (Algo) (Part 2 of 2) 2. Change all of the numbers in the data area of your worksheet so that it looks like this: If your formulas are correct, you should get the correct answers to the following questions. (a) What is the net operating income (loss) in Year 1 under absorption costing? (Loss amounts should be indicated with a minus sign.) (b) What is the net operating income (loss) in Year 2 under absorption costing? (Loss amounts should be indicated with a minus sign.) (c) What is the net operating income (loss) in Year 1 under variable costing? (Loss amounts should be indicated with a minus sign.) (d) What is the net operating income (loss) in Year 2 under variable costing? (Loss amounts should be indicated with a minus sign.) (e) The net operating income (loss) under absorption costing is less than the net operating income (loss) under variable costing in Year 2 because: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Units were left over from the previous yeac The cost of goods sold is always less under variable costing than under absorption costing. Soles exceeded production so some of the fixed manulacturing overticod of the period was released from inventories under absorption costing 3. Make a note of the absorption costing net operating income (loss) in Year 2. At the end of Year 1, the company's board of directors set a target for Year 2 of net operating income of $40,000 under absorption costing. If this target is met, a hefty bonus would be paid to the CEO of the company. Keeping everything else the same from part (2) above, change the units produced in Year 2 to 3,800 units. (a) Would this change result in a bonus being paid to the CEO? Yes No