Variable and Absorption Costing using Excel's SUM and Basic Math Functions 1 1 Addison, Inc. makes a single product, an indoor fireplace, and has provided data from last year of operations. The Controller has asked you to compare income statements if the company used the variable costing approach vs. the absorption costing report. Use the information included in the Excel Simulation and the Excel functions described below to complete the task 25 points Skipped eBook . Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell. =B3" was entered, the formula would output the result from cell B3, or 420 in this example. Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: + (plus sign to add). - (minus sign to subtract). * (asterisk sign to multiply), and/(forward slash to divide). From the Excel Simulation below, if in a blank cell"=B15+B16" was entered the formula would add the values from those cells and output the result, or 9,500 in this example. If using the other math symbols the result would output an appropriate answer for its function. SUM function: Allows you to refer to multiple cells and adds all the values. You can add individual cell references or ranges to utilize this function. From the Excel Simulation below. if in a blank cell SUM(B6,B7, B8) was entered the formula would output the result of adding those three separate cells, or 215 in this example. Similarly, if in a blank cell"=SUM(86:88)" was entered the formula would output the same result of adding those cells, except they are expressed as a range in the formula, and the result would be 215 in this example. Print References X 5 Variable and Absorption Costing - Excel ? ca X Sign In np FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW 12 D Colors - Aa A Fonts - Themes Effects - Width: Automatic 1 Height Automatic Scale 100% Arrange Margins Orientation Size Print Breaks Background Print Area Titles Page Setup Sheet Options Themes Scale to Fit F A C22 fo D E A 1 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 Vanable per unit produced: 6 Direct materials $135 7 Direct labor $43 8 Variable manufacturing overhead $37 9 Fixed manufacturing overhead per year $210,000 10 Selling and administrative expenses: 11 Variable per unit sold $45 12 Fixed per year $190,000 13 14 Units in beginning inventory 0 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 19 20 1. Assume the company uses variable costing: 21 22 Compute the unit product cost for one fireplace 23 Chapter 7 Excel HW 0 Saved 1 . Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell. "=B3" was entered, the formula would output the result from cell B3, or 420 in this example, Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: + (plus sign to add). - (minus sign to subtract). * (asterisk sign to multiply), and / fforward slash to divide). From the Excel Simulation below.ifin a blank cell"=B15+B16" was entered the formula would add the values from those cells and output the result, or 9,500 in this example. If using the other math symbols the result would output an appropriate answer for its function SUM function: Allows you to refer to multiple cells and adds all the values. You can add individual cell references or ranges to utilize this function. From the Excel Simulation below.if in a blank cell =SUM(B6,B7,88) was entered the formula would output the result of adding those three separate cells, or 215 in this example. Similarly, if in a blank cell =SUM(B6:88) was entered the formula would output the same result of adding those cells, except they are expressed as a range in the formula, and the result would be 215 in this example, 25 points Skipped KU 5- eBook ? X FILE HOME Sign In D Print Colors - Aa A Fonts Themes Effects - Variable and Absorption Costing - Excel INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Width: Automatic Height Automatic Margins Orientation Size Print Breaks Background Print Scale 100% Area Titles Page Setup Scale to Fit A Arrange o References Sheet Options Themes C22 f y D E w A B 22 Compute the unit product cost for one fireplace 23 24 Prepare a contribution margin income statement for the year 25 26 Sales 27 Variable expenses: 28 Variable cost of goods sold 29 Variable selling and administrative expenses 30 Contribution margin 31 Fixed expenses: 32 Fixed manufacturing overhead 33 Fixed selling and administrative expenses 34 Net operating income 35 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 Sheet1 READY 100% Attempt(s) 2/3 Hint ? Variable and Absorption Costing - Excel KU CHI Sign in FILE HOME Colors - PAGE LAYOUT INSERT FORMULAS DATA REVIEW ME | Width: Automatic O Height Automatic Print Breaks Background Print Margins Orientation Size Sheet In Scale 10084 Area- Titles Options Scale ta Fit 1 Page Setup Al Fonts Themes JOEffects - Arrange Themes C22 d B E B A 29 Variable selling and administrative expenses 30 Contribution margin 31 Fixed expenses: 32 Fixed manufacturing overhead 33 Fixed selling and administrative expenses 34 Net operating income 35 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 Sheet1 READY 100% Attempt(s) 2/3 Hint