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Book2 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View ♡ General 1 - Wrap Text Merge & Center 1 - 3 Autosum * * Cut La Copy Paste Format Painter Clipboard Calibri - 11 - AA BI U - ->-A Font Conditional Format Formatting as Table Styles Cell Styles Insert Delete Format 2 Clear Sort & Find & Filter Select Editing Alignment Number Cells 024 A - for F G H I J K L M N O Year 1 Year 3 60000 40000 40000 50000 $ Production in Units Sales in Units Variable cost Fixed Manufacturing cost Variable selling Expenses Fixed Selling & Administrative Expenses Year 2 50000 50000 4.00 per unit 5,40,000.00 3.00 per unit 80,000.00 $ $ $ Sales Cost of goods sold Gross Margin Selling & Administrative Expenses Net Operating Income 14 16 Year 1 Year 2 Year 3 $ 10,00,000.00 $ 7,80,000.00 $ 10,00,000.00 $ 7,40,000.00 $ 5,20,000.00 $ 7,85,000.00 $ 2,60,000.00 $ 2,60,000.00 $ 2,15,000.00 $ 2,30,000.00 $ 2,00,000.00 $ 2,30,000.00 $ 30,000.00 $ 60,000.00 $ (15,000.00) Starfax Inc. Variable Costing Income Statement Year 1 Year 2 Year 3 50000 60000 40000 $ 10,00,000.00 $ 7,80,000.00 $ 10,00,000.00 $ 2,00,000.00 $ 1,60,000.00 $ 2,00,000.00 $ 1,50,000.00 $ 1,20,000.00 $ 1,50,000.00 $ 3,50,000.00 $ 2,80,000.00 $ 3,50,000.00 $ 6,50,000.00 $ 5,00,000.00 $ 6,50,000.00 Sales (Units) Sales Variable Manufacturing Expenses Variable Selling and Administrative Expense Total Variable expenses Contribution Margin=(C)=(A)-(B) Fived Evnences Sheet1 Sheet2 Sheet3 23 24 I Ready + BO of ^ 100% ve ENG 0 10:20 O 17-02-2020
Book2 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General - Wrap Text Merge & Center 1 1 - 3 Autosum * Calibri - 11 - AA BI U - ->-A Font Paste 9 % 8... Insert Delete Format Conditional Format Formatting as Table Styles Format Painter Clipboard Cell Styles 2 Clear Sort & Filter Editing Find & Select Alignment Number Cells 024 foc А F G H J K L M N O 15 16 17 Sales (Units) Sales Variable Manufacturing Expenses Variable Selling and Administrative Expense Total Variable expenses Contribution Margin=(C)=(A)-(B) Fixed Expenses Fixed Manufacturing Expenses Fixed Selling and Administrative Expenses Total Fixed Expenses=(D) Net Operating Income-(C)-(D) C D E Starfax Inc. Variable Costing Income Statement Year 1 Year 2 Year 3 50000 60000 40000 $ 10,00,000.00 $ 7,80,000.00 $ 10,00,000.00 $ 2,00,000.00 $ 1,60,000.00 $ 2,00,000.00 $ 1,50,000.00 $ 1,20,000.00 $ 1,50,000.00 $ 3,50,000.00 $ 2,80,000.00 $ 3,50,000.00 $ 6,50,000.00 $ 5,00,000.00 $ 6,50,000.00 $ $ $ $ 5,40,000.00 $ 80,000.00 $ 6,20,000.00 $ 30,000.00 $ 5,40,000.00 $ 5,40,000.00 80,000.00 $ 80,000.00 6,20,000.00 $ 6,20,000.00 -1,20,000.00 $ 30,000.00 2a) Variable Manufacturing Cost Fixed Manufacturing Cost Total Absorption cost per unit Absorption cost per unit Year 1 $ 4.00 $ 10.80 14.80 Year 2 $ $ $ Year 3 4.00 $ 9.00 $ 13.00 $ 4.00 13.50 17.50 36 2b) 37 Calculation of Units in Ending Inventory Year 1 Year 2 Year 1 [rear 2_ Year 3 Year 3 _ Sheet1 Sheet2 Sheet3 K Ready OO of ^ 100% @ ve ENG U 10:21 17-02-2020
Book2 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General - Wrap Text Merge & Center 1 1 - 3 Autosum * Calibri - 11 - AA BI U - ->-A Font Paste Insert Delete Format Conditional Format Formatting as Table Styles Format Painter Clipboard Cell Styles 2 Clear Sort & Find & Filter Select Editing Alignment Number Cells - C D E 024 А 35 36 2b) F G H I J K L M N O Calculation of Units in Ending Inventory Year 2 Year 1 Year 3 Units in Beginning Inventory Add: Production Less: Sales Units in Ending Inventory 50000 50000 60000 40000 20000 20000 40000 50000 10000 30,000.00 Year 2 Year 3 $ (1,20,000.00) $ 30,000.00 Difference arises in Variable and Absorption Costing Method due to fixed Manufacturing Overhead cost deferred in Inventory Year Year 1 Variable Costing Net Operating Profit $ Add: Fixed Manufacturing Overhead cost deferred in Inventory Less: Fixed Manufacturing Overhead in Beginning Inventory Net Operating Income under Absoption costin $ - $ 1,80,000.00 $ 1,35,000.00 $ (1,80,000.00) $ (15,000.00) 30,000.00 $ 60,000.00 Year 2 (20000*$9) Fixed Manufacturing cost deferred in Inventoy Year 3 (10000*$13.50) 52 53 Sheet1 Sheet2 Sheet3 Ready BO of ^ 100% ve ENG 0 10:21 + . o 17-02-2020
Book2 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View * Cut Copy ♡ General - Wrap Text Merge & Center 1 1 - 3 Autosum * Calibri - 11 - AA BI U - ->-A Font Paste Insert Delete Format Conditional Format Formatting as Table Styles Cell Styles Format Painter Clipboard 2 Clear Sort & Filter Editing Find & Select Alignment Number Cells - 024 A B DE F G H I J K L M N O 42 30,000.00 Year 2 Year 3 $ (1,20,000.00) $ 30,000.00 Difference arises in Variable and Absorption Costing Method due to fixed Manufacturing Overhead cost deferred in Inventory Year Year 1 Variable Costing Net Operating Profit $ Add: Fixed Manufacturing Overhead cost deferred in Inventory Less: Fixed Manufacturing Overhead in Beginning Inventory Net Operating Income under Absoption costin $ - $ 1,80,000.00 $ 1,35,000.00 - 60,000.00 $ (1,80,000.00) $ (15,000.00) 30,000.00 $ Year 2 (20000*$9) Fixed Manufacturing cost deferred in Inventoy Year 3 (10000*$13.50) In case of lean production, prodcution would be tied to sales in each year,so no inventory of finished goods would arise as a result net income under variable costing and absorption costing would be same in each year 2 and 3 55 5) 56 Sheet1 Sheet2 Sheet3 Ready BOJ 100% + 0 10:21 17-02-2020 17 OPA O ENG
Book2 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View e Define Name Calculate Now Insert Function Math More & Trigº Functions Watch X-Trace Precedents 5 Show Formulas Trace Dependents Error Checking Remove Arrows Evaluate Formula Formula Auditing AutoSum Recently Financial Logical Text Date & Lookup & - Used Time Reference Function Library Calculation f Use in Formula Name Manager Create from Selection Defined Names Calculate Sheet Calculation 024 Year 1 50000 50000 Year 2 60000 40000 per unit Year 3 40000 50000 1 2 Production in Units 3 Sales in Units 4 Variable cost 5 Fixed Manufacturing cost 6 Variable selling Expenses 7 Fixed Selling & Administrative Expenses 8 540000 per unit 80000 9 Year 2 780000 520000 =D10-D11 200000 =D12-D13 Year 3 1000000 785000 =E10-E11 230000 =E12-E13 10 Sales 11 Cost of goods sold 12 Gross Margin 13 Selling & Administrative Expenses 14 Net Operating Income 15 16 17 18 Sales (Units) 19 Sales 20 Variable Manufacturing Expenses 21 Variable Selling and Administrative Expense 22 Total Variable expenses 23 Contribution Margin=(C)=(A)-(B) 20 Fived Evnences Ke Sheet1 Sheet2 Sheet30 Ready Year 1 1000000 740000 =C10-C11 230000 =C12-C13 Starfax Inc. Variable Costing Income Statement Year 1 =C2 =C10 =C3*C4 =C3*C6 =SUM(C20:021) =C19-C22 Year 2 =D2 =D10 =D3*C4 =D3*C6 =SUM(D20:D21) =D19-D22 Year 3 =E2 =E10 =E3*C4 =E3*C6 =SUM(E20:E21) =E19-E22 100% - 0 OD OPA 10-21 O ENG 17-02-2020 17 0
Book2 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View fir E O @ ? À Q @ Define Name Calculate Now Insert Function Math More & Trigº Functions Watch X-Trace Precedents 5 Show Formulas Trace Dependents Error Checking Remove Arrows Evaluate Formula Formula Auditing AutoSum Recently Financial Logical Text Date & Lookup & - Used Time Reference Function Library Calculation f Use in Formula Name Manager Create from Selection Defined Names Calculate Sheet Calculation 024 fic 15 16 17 18 Sales (Units) 19 Sales 20 Variable Manufacturing Expenses 21 Variable Selling and Administrative Expense 22 Total Variable expenses 23 Contribution Margin=(C)=(A)-(B) 24 Fixed Expenses 25 Fixed Manufacturing Expenses 26 Fixed Selling and Administrative Expenses 27 Total Fixed Expenses=(D) 28 Net Operating Income-(C)-(D) Starfax Inc. Variable Costing Income Statement Year 1 =C2 =C10 =C3*C4 =C3*C6 =SUM(C20:021) =C19-C22 Year 2 =D2 =D10 =D3*C4 =D3*C6 =SUM(D20:021) =D19-D22 Year 3 =E2 =E10 =E3*C4 =E3*C6 =SUM(E20:E21) =E19-E22 =C5 =C7 =SUM(C25:C26) =C23-C27 =C5 =C7 =SUM(D25:D26) =D23-D27 =C5 =C7 =SUM(E25:E26) =E23-E27 29 30 31 32 Variable Manufacturing Cost 33 Fixed Manufacturing Cost 34 Total Absorption cost per unit 35 36 Absorption cost per unit Year 1 =C4 =C5/C2 =SUM(C32:C33) Year 2 =C4 =C5/D2 =SUM(D32:D33) Year 3 =C4 =C5/E2 =SUM(E32:E33) Calculation of Units in Ending Inventory Year 1 37 Year 2 Year 3 Sheet1 Sheet2 Sheet3 Ready + DO gl ^ 100% rue ENG 0 10:22 17-02-2020
Book2 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View e Define Name Calculate Now Insert Function Math More & Trigº Functions Watch X-Trace Precedents 5 Show Formulas Trace Dependents Error Checking Remove Arrows Evaluate Formula Formula Auditing AutoSum Recently Financial Logical Text Date & Lookup & - Used Time Reference Function Library Calculation f Use in Formula Name Manager Create from Selection Defined Names Calculate Sheet Calculation 024 36 Calculation of Units in Ending Inventory Year 1 Year 2 37 38 Units in Beginning Inventory 39 Add: Production 40 Less: Sales 41 Units in Ending Inventory 42 =C2 =C3 LOO. .can =C38+C39-C40 =D2 =D3 =D38+D39-D40 Year 3 =D41 =E2 =E3 =E38+E39-E40 Difference arises in Variable and Absorption Costing Method due to fixed Manufacturing 43 Overhead cost deferred in Inventory 44 Year 45 Variable Costing Net Operating Profit Year 1 =C28 Year 2 =D28 Year 3 =E28 46 Add: Fixed Manufacturing Overhead cost deferred in Inventory =D41*D33 =E41*E33 --D46 =SUM(E45:E47) =SUM(C45:C47) =SUM(D45:047) Year 2 (20000*$9) Year 3 (10000*$13.50) 47 Less: Fixed Manufacturing Overhead in Beginning Inventory 48 Net Operating Income under Absoption costing 49 50 51 Fixed Manufacturing cost deferred in Inventoy 52 53 54 Sheet1 Sheet2 Sheet3 Ready I + BOU 100% - - ENG op 0 10:22 17-02-2020 0
Book2 - Microsoft Excel - X Home Insert Page Layout Formulas Data Review View e Define Name Calculate Now Insert Function Math More & Trigº Functions Watch X-Trace Precedents 5 Show Formulas Trace Dependents Error Checking Remove Arrows Evaluate Formula Formula Auditing AutoSum Recently Financial Logical Text Date & Lookup & - Used Time Reference Function Library Calculation f Use in Formula Name Manager Create from Selection Defined Names Calculate Sheet Calculation 024 fic Difference arises in Variable and Absorption Costing Method due to fixed Manufacturing 43 Overhead cost deferred in Inventory 44 Year 45 Variable Costing Net Operating Profit Year 3 Year 1 =C28 Year 2 =D28 =E28 46 Add: Fixed Manufacturing Overhead cost deferred in Inventory =D41*D33 =E41*E33 47 Less: Fixed Manufacturing Overhead in Beginning Inventory 48 Net Operating Income under Absoption costing --D46 =SUM(E45:E47) =SUM(C45:047) =SUM(D45:047) 49 50 51 Fixed Manufacturing cost deferred in Inventoy Year 2 (20000*$9) Year 3 (10000*$13.50) 52 53 54 In case of lean production, prodcution would be tied to sales in each year,so no inventory of finished goods would arise as a result net income under variable costing and absorption costing would be same in each year 2 and 3 55 56 Sheet1 Sheet2 Sheet3 I Ready + 3O OP ^ 100% ve ENG 0 10:22 17-02-2020