Ch. 6 Accounting (1)

Ch. 6 Accounting (1) - $32.00 $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 12.00 20 Absorption costing unit product cost
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Unformatted text preview: $32.00 $40 Construct the Absorption Costing Income Statement Year 1 Year 2 Sales $400,000 $300,000 Cost of goods sold 256,000 240000 Gross margin 144,000 60,000 Selling and administrative expenses 102,000 94,000 Net operating income $42,000 $(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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