Variable and Absorption Costing - Excel ? HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In * Calibri - 11 A % BIU - A Cells Editing Alignment Number Conditional Format as Cell Formatting Table Styles Styles board Font A 45 D E A B Addison, Inc, makes a single product, an indoor fireplace. Data for last year is as follows: 2 3 Selling price per fireplace $420 4 Manufacturing costs: 5 Variable per unit produced: 6 Direct materials S135 Direct labor $43 8 Variable manufacturing overhead $37 Fixed manufacturing overhead per year S210.000 10 Selling and administrative expenses: 11 Variable per unit sold $45 Fixed per year $190.000 13 14 Units in beginning inventory 15 Units produced during the year 5.000 16 Units sold during the year 4.500 17 18 Use the data to answer the following. 9 + 12 0 19 20 1. Assume the company uses variable costing: 21 22 Compute the unit product cost for one fireplace 23 24 Prepare a contribution margin income statement for the year Sheet1 215 READY Attempts) 10/10 Hint 100% Show Me D E B epare a contribution margin income statement for the year 1.890,000 967,500 202,500 1,170,000 720,000 210,000 190.000 400.000 320,000 $ ales ariable 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 5 6 Compute the number of fireplaces required to breakeven -7 38 2. Assume the company uses absorption costing: 39 40 Compute the unit product cost for one fireplace 41 42 Prepare an income statement for the year 43 44 Sales 45 Cost of goods sold 46 Gross margin 47 Selling and administrative expenses 48 Net operating income Sheet1 1.890.000 READY DO B 202,500 1,170,000 720,000 210,000 190,000 400,000 320,000 S Variable selling and administrative expenses Contribution margin Fixed expenses: Fixed manufacturing overhead 3 Fixed selling and administrative expenses 4 Net operating income 55 36 Compute the number of fireplaces required to breakeven 37 38 2. Assume the company uses absorption costing: 39 40 Compute the unit product cost for one fireplace 41 42 Prepare an income statement for the year 43 44 Sales 45 Cost of goods sold 46 Gross margin 47 Selling and administrative expenses 48 Net operating income 49 50 51 52 1.890.000 Sheet1 +++ READY 1999