Two files are attached. One is in microsoft word, and the other is excel. This is a project. The details of how to do this project is in the word document.
ACC 381 Summer 2013 Excel Project #4 Data for this exercise is contained in an Excel worksheet. Use Excel for ALL of your calculations. Do not change the original data; if you are instructed to change information, copy the original data to complete that requirement. The syllabus has more detailed instructions for completing the Excel projects. DO NOT MANUALLY INPUT DATA UNLESS INSTRUCTED TO DO SO! Formulas and cell references MUST be used; points will be deducted if they are not. This is NOT a group project! You are expected to complete the assignments on your own! Completed assignments are to be submitted in the appropriate drop box in Sakai. INSTRUCTIONS Grand Prix Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2012 are as follows: April May Unit data Beginning inventory Production Sales Variable costs Manufacturing cost per unit produced Operating (marketing) cost per unit sold Fixed costs Manufacturing costs Operating (marketing) costs 0 50 0 35 0 15 0 40 0 52 0 $ 10,000 3,00 0 $ 10,000 3,00 0 $2,000,00 0 600,00 0 $2,000,00 0 600,00 0 The selling price per vehicle is $24,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs. Requirement #1 Prepare April and May 2012 income statements for Grand Prix Motors under (a) variable costing and (b) absorption costing. Requirement #2 Prepare a numerical reconciliation and explanation of the difference between operating income for each month under variable costing and absorption costing. Hint: Prepare two tables - one showing the difference in operating incomes each month and a second one showing the difference in fixed mfg costs in ending inventory minus the fixed mfg costs in beginning inventory under absorption costing. April Unit data Beginning inventory Production 500 Sales 350 Variable costs Manufacturing cost per unit produced $ 10,000 Operating (marketing) cost per unit sold 3,000 Fixed costs Manufacturing costs $2,000,000 Operating (marketing) costs 600,000 May 150 400 520 $ 10,000 3,000 $2,000,000 600,000
