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Ch. 6 Accounting

# Ch. 6 Accounting - \$35.00 \$40 Construct the Absorption...

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Chapter 6: Applying Excel Data Selling price per unit \$50 Manufacturing costs: Variable per unit produced: Direct materials \$11 Direct labor \$6 Variable manufacturing overhead \$3 Fixed manufacturing overhead per year \$120,000 Selling and administrative expenses: Variable per unit sold \$4 Fixed per year \$70,000 Year 1 Year 2 Units in beginning inventory 0 Units produced during the year 10,000 6,000 Units sold during the year 8,000 6,000 Enter a formula into each of the cells marked with a ? below Review Problem 1: Contrasting Variable and Absorption Costing Compute the Ending Inventory Year 1 Year 2 Units in beginning inventory 0 2,000 Units produced during the year 10,000 6,000 Units sold during the year 8,000 6,000 Units in ending inventory 2,000 (2,000) Compute the Absorption Costing Unit Product Cost Year 1 Year 2 Direct materials \$11 \$11 Direct labor 6 6 Variable manufacturing overhead 3 3 Fixed manufacturing overhead 15.00 20 Absorption costing unit product cost
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Unformatted text preview: \$35.00 \$40 Construct the Absorption Costing Income Statement Year 1 Year 2 Sales \$400,000 \$300,000 Cost of goods sold 280,000 240000 Gross margin 120,000 60,000 Selling and administrative expenses 102,000 94,000 Net operating income \$18,000 \$(34,000) Compute the Variable Costing Unit Product Cost Year 1 Year 2 Direct materials \$11 \$11 Direct labor 6 6 Variable manufacturing overhead 3 3 Variable costing unit product cost \$20 \$20 Construct the Variable Costing Income Statement Year 1 Year 2 Sales \$400,000 \$300,000 Variable expenses: Variable cost of goods sold \$160,000 \$120,000 Variable selling and administrative expenses \$32,000 192,000 24,000 \$144,000 Contribution margin 208,000 156,000 Fixed expenses: Fixed manufacturing overhead \$120,000 \$120,000 Fixed selling and administrative expenses \$70,000 \$190,000 \$70,000 \$190,000 Net operating income \$18,000 \$(34,000)...
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