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This question is regarding an excel spreadsheet which requires you to input form

ID: 2418405 • Letter: T

Question

This question is regarding an excel spreadsheet which requires you to input formulas into the cells corresponding with variable and absorption costing. I'm having diffculties finding the correct formulas to input into the cells. The cells with questions mark require formulas. I have already filled some of the cells out, but would appreciate a check on my answers.

Edit Font Alignment | Fill : Arial Wr Clear Paste B58 1-1 Chapter 6: Applying Excel 3 Data 4 Selling price per unit 5 Manufacturing costs 6 Variable per unit produced $11 Direct materials Direct labor Var 8 riable manufacturing overhead $3 $120,000 10 Fixed manufacturing overhead per year 11 Selling and administrative expenses: 12 Variable per unit sold 13 Fixed per year 14 15 16 Units in beginning inventory 17 Units produced during the year 18 Units sold during the year 19 20 Enter a formula into each of the cells marked with a ? below 21 Review Problem 1: Contrasting Variable and Absorption Costing $4 $70,000 Year 1 Year 2 10,000 8,000 6,000 8,000 23 Compute the Ending Inventory 24 Year 1 Year 2 25 Units in beginning inventory 26 Units produced during the year 27 Units sold during the year 28 Units in ending i 29 30 Compute the Absorption Costing Unit Product Cost 31 32 Direct materials 33 Direct labor 34 Variable manufacturing overhead 6,000 8,000 2.000 Year 1 Year 2 $11 $11 35 Fixed manufacturing overhead 36 Absorption costing unit product cost 37 38 Construct the Absorption Costing Income Statement 39 40 Sales 41 Cost of goods sold 42 Gross margin 43 Selling and administrative expenses 44 Net operating income 20 32 Year 1 400,000$ 400,00o Year 2 80,000 102,000 22,000 240,000 160,000 102,000

Explanation / Answer

Variable costing Income statement

Sl

Particulars

Year 1

Year 2

A

Sales ( V * M)

       4,00,000

       4,00,000

Less Variable Expenses

B

Variable cost of goods sold ( U * L )

       2,00,000

       1,20,000

C

Variable Selling and admin expenses ( V * R )

           32,000

       2,32,000

           32,000

       1,52,000

D

Contribution ( A - (B+C))

     1,68,000

       2,48,000

E

Fixed Expenses

F

Fixed Manufacturing Overhead ( Q )

       1,20,000

       1,20,000

G

Fixed Selling Overhead ( S )

           70,000

       1,90,000

           70,000

       1,90,000

H

Profit ( D - ( F+G) )

         -22,000

           58,000

Variable costing Unit Product Product cost

Particulars

Year 1 ($)

Year 2 ($)

I

Direct Material

11

11

J

Direct Labour

6

6

K

Variable manufacturing Overhead

3

3

L

Variable cost per unit ( I+J+K )

20

20

Data

$

M

Selling Price Per Unit ( Spu)

50

Manufacturing costs

Variable per unit produced

N

Direct Material

11

O

Direct Labour

6

P

variable manufacturing overhead

3

Q

Fixed manufacturing overhead per year

120000

Selling and Admin exp

R

Variable per unit sold

4

S

Fixed Per year

70000

Units

Particluars

Year 1

Year 2

T

Units in the beginning inventory

0

2000

U

Units produced during the year

10000

6000

V

Units sold during the year

8000

8000

W

Units in the closing Inventory ( (T + U) - V )

2000

0

Variable cost of goods manufactured = Total Variable cost per Unit * Actual output produced

Variable costing Income statement

Sl

Particulars

Year 1

Year 2

A

Sales ( V * M)

       4,00,000

       4,00,000

Less Variable Expenses

B

Variable cost of goods sold ( U * L )

       2,00,000

       1,20,000

C

Variable Selling and admin expenses ( V * R )

           32,000

       2,32,000

           32,000

       1,52,000

D

Contribution ( A - (B+C))

     1,68,000

       2,48,000

E

Fixed Expenses

F

Fixed Manufacturing Overhead ( Q )

       1,20,000

       1,20,000

G

Fixed Selling Overhead ( S )

           70,000

       1,90,000

           70,000

       1,90,000

H

Profit ( D - ( F+G) )

         -22,000

           58,000

Variable costing Unit Product Product cost

Particulars

Year 1 ($)

Year 2 ($)

I

Direct Material

11

11

J

Direct Labour

6

6

K

Variable manufacturing Overhead

3

3

L

Variable cost per unit ( I+J+K )

20

20

Data

$

M

Selling Price Per Unit ( Spu)

50

Manufacturing costs

Variable per unit produced

N

Direct Material

11

O

Direct Labour

6

P

variable manufacturing overhead

3

Q

Fixed manufacturing overhead per year

120000

Selling and Admin exp

R

Variable per unit sold

4

S

Fixed Per year

70000

Units

Particluars

Year 1

Year 2

T

Units in the beginning inventory

0

2000

U

Units produced during the year

10000

6000

V

Units sold during the year

8000

8000

W

Units in the closing Inventory ( (T + U) - V )

2000

0

Variable cost of goods manufactured = Total Variable cost per Unit * Actual output produced

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