Question

2. Change all of the numbers in the data area of your worksheet so that it looks like this: A B с 1 Chapter 6: Applying Excel 2 3 4 $ 310 5 6 $ 133 7 Data Selling price per unit Manufacturing costs: Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead per year Selling and administrative expenses: Variable per unit sold Fixed per year $ 56 8 $ 26 9 $ 183,600 10 $ 5 $ 108,000 11 Year 2 12 13 Units in beginning inventory Units produced during the year Units sold during the year Year 1 0 3,400 3,000 14 2,700 3,000

Answer 1

Absorption Costing Particulars Input Data (in $) Year 1 (in $) Year 2 (in $) 452,200 133 56 359,100 151,200 190,400 26 88,400 70,200 731,000 580,500 183,600 183,600 183,600 547,400 396,900 Raw Material Consumed / Direct Material Direct Labour Variable Manufacturing Overhead [Direct Expenses] Prime Cost [On Production] Fixed Manufacturing Overhead [Factory Overhead] Works Cost Selling & Administrative Expenses - Variable on [On Sales] - Fixed Portion Cost of Goods Sold Add: Opening Stock of Finished Goods [Rate = Works Cost/Qty. Produced] Less: Closing Stock of Finished Goods [Rate = Works Cost/ Qty. Produced] Cost of Sales [A] Sales [B] Profit/(Loss) [B-A] 5 108,000 15,000 108,000 424,400 15,000 108,000 273,900 58,800 64,400 14,700 360,000 930,000 310 318,000 930,000 612,000 570,000 Stock Opening Production Sales Closing 3,400 3,000 400 400 2,700 3,000 100 CS Scanned with CamScanner

Variable Costing Particulars Year 1 (in $) 930,000 Year 2 (in $) 930,000 Sales Less: Variable Cost Direct Material 452,200 359,100 - Direct Labour 190,400 151,200 88,400 70,200 - Variable Manufacturing Overhead - Variable Selling & Admin. Expenses Contribution / Operating Income 15,000 15,000 184,000 334,500 Less: Fixed Cost 183,600 - Manufacturing Overhead - Selling & Admin. Expenses 183,600 108,000 (107,600) 108,000 Profit/(Less with CamScanner 42,900 CS