XYZ Company anticipates the following costs during the first

year of operations. The company is attempting to project

profitability if $100\%$ of production is sold, and if $75\%$ of

production is sold. Use the pick lists associated with the boxed

areas to select amounts for each cost category in the absorption

and variable costing income statements that follow. Question $3$

Under $75\%$ sales assumption, using absorption costing, the

COGS is calculated by adding Direct Material $($DM$),$ Direct Labor

$($DL$),$ Variable Overhead $($VOH$),$ and Fixed Overhead $($FOH$)$

multiply by $75\%.$

True

False

Question $4$

Under $100\%$ sales assumption, using absorption costing, the

ending Inventory balance is$?$

Question $5$

Under $75\%$ sales assumption, using absorption costing, the

ending Inventory balance is$?$ Afterwards, answer Question $6$

Under $75\%$ sales assumption, using variable costing, the ending

Inventory balance is$?$

Question $7$

Under $75\%$ sales assumption, using variable costing, the ending

Inventory balance can be calcualted by:

$(150,000+75,000+25,000)25\%$

True

False

Question $8$

Under $75\%$ sales assumption, using variable costing, the

variable product cost balance can be calcualted by:

$(150,000+75,000+25,000)25\%$

True $1-17\mathrm{.}03$

XYZ Company

VARIABLE COSTING INCOME STATEMENT For the Year Ending December $31,20$XX

$\backslash$table$[[\backslash$table$[[$XYZ Company$],[$VARIABLE COSTING INCOME STATEMENT$],[$For the Year Ending December $31,20$XX$]]],[$Assumption $>>,75\%$ Sold,$100\%$ Sold$],[$Sales$,?,$$$,600,000],[$Less: Variable product cost,?,$],[$Variable manufacturing margin,#VALUE!,#VALUE!$],[$Less: Variable SG&A$,?,],[$Contribution margin,#VALUE!,#VALUE!$],[$Less: Fixed expenses$],[$Income$,$#VALUE!,#VALUE!$]]$

#VALUE!

How much is ending inventory if $75\%$ of the production is sold, and:

XYZ uses absorption costing? $>>>>$

$?$

XYZ uses variable costing?

$?$Question $9$

Under Question

the questions at the bottom of the spreadsheet XYZ Company anticipates the following costs during the first

year of operations. The company is attempting to project

profitability if $100\%$ of production is sold, and if $75\%$ of

production is sold. Use the pick lists associated with the boxed

areas to select amounts for each cost category in the absorption

and variable costing income statements that follow. Correct

selections will turn the boxed areas green. Afterwards, answer

the questions at the bottom of the spreadsheet. Question $9$

Under $75\%$ sales assumption, using variable costing, the

contribution margin balance can be calcualted by:

Net Sales

Less: $(150,000+75,000+25,000)75\%$

Less: $450,00010\%$

True

False

Question $10$

Under Variable Costing, if a company produces more and sales

less:

The Net Income is LESS and the End Inventory is LESS.

True

False Question $6$

Under $75\%$ sales assumption, using variable costing, the ending

Inventory balance is$?$

Question $7$

Under $75\%$ sales assumption, using variable costing, the ending

Inventory balance can be calcualted by:

$(150,000+75,000+25,000)25\%$

True

False

Question $8$

Under $75\%$ sales assumption, using variable costing, the

variable product cost balance can be calcualted by:

$(150,000+75,000+25,000)25\%$

True Question $3$

Under $75\%$ sales assumption, using absorption costing, the

COGS is calculated by adding Direct Material $($DM$),$ Direct Labor

$($DL$),$ Variable Overhead $($VOH$),$ and Fixed Overhead $($FOH$)$

multiply by $75\%.$

True

False

Question $4$

Under $100\%$ sales assumption, using absorption costing, the

ending Inventory balance is$?$

Question $5$

Under $75\%$ sales assumption, using absorption costing, the

ending Inventory balance is$?$Question $1$

Under $100\%$ sales assumption, using absorption costing, the

COGS is calculated by adding Direct Material $($DM$),$ Direct Labor

$($DL$),$ and Fixed Overhead $($FOH$).$

True

False

Question $2$

Under $100\%$ sales assumption, using absorption costing, the

SG&A is calculated by adding Fixed SG&A$,$ Variable SG&A$,$ and

Fixed Overhead $(FFH$