MANAGERIAL ACCOUNTING LL/W ACCESS
17th Edition
ISBN: 9781265537883
Author: Garrison
Publisher: MCG
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Textbook Question
Chapter 6, Problem 1AE
A | B | C | D | E | |
1 | Chapter 6: Applying Excel | ||||
2 | |||||
3 | Data | ||||
4 | Selling price per unit | $50 | |||
5 | |||||
6 | Variable per unit produced | ||||
7 | Direct materials | $11 | |||
8 | Direct labour | ||||
9 | Variable manufacturing |
$6 | |||
10 | Fixed manufacturing overhead per year | $120,000 | |||
11 | Selling and administrative expenses | ||||
12 | Variable per unit sold | $4 | |||
13 | Fixed per year | $70 000 | |||
14 | |||||
15 | Year 1 | Year 2 | |||
16 | Units in beginning inventory | 0 | ? | ||
17 | Units produced doing the year | 10 000 | 6 000 | ||
18 | Units sold doing the year | 8 000 | 8 000 | ||
19 | |||||
20 | Enter a formula into each of the cells marked with a ? below |
||||
21 | Review Problem 1: Contrasting Variable and Absorption Costing | ||||
22 | |||||
23 | Compute the Ending Inventory | ||||
24 | Year 1 | Year 2 | |||
25 | Units in beginning inventory | 0 | ? | ||
26 | Units produced doing the year | ? | ? | ||
27 | Units sold doing the year | ? | ? | ||
28 | Units in ending inventory | ? | ? | ||
29 | |||||
30 | Compute the Absorption Costing Unit Product Cost | ||||
31 | Year 1 | Year 2 | |||
32 | Direct materials | ? | ? | ||
33 | Direct labour | ? | ? | ||
34 | Variable manufacturing overhead | ? | ? | ||
35 | Fixed manufacturing overhead | ? | ? | ||
36 | Absorption costing unit product cost | ? | ? | ||
37 | |||||
38 | Construct the Absorption Costing Income Statement | ||||
39 | Year 1 | Year 2 | |||
40 | Sales | ? | ? | ||
41 | Cost of goods sold | ? | ? | ||
42 | Gross margin | ? | ? | ||
43 | Selling and administrative expenses | ? | ? | ||
44 | Net operating income | ? | ? | ||
45 | |||||
46 | Compute the Variable Costing Unit Product Cost | ||||
47 | Year 1 | Year 2 | |||
48 | Direct materials | ? | ? | ||
49 | Direct labour | ? | ? | ||
50 | Variable manufacturing overhead | ? | ? | ||
51 | Variable costing unit product cost | ? | ? | ||
52 | |||||
53 | Construct the Variable Costing Income Statement | ||||
54 | Year 1 | Year 2 | |||
55 | Sales | ? | ? | ||
56 | Variable expenses | ||||
57 | Variable cost of goods sold | ? | ? | ||
58 | Variable selling and administrative expenses | ? | ? | ? | ? |
59 | Contribution margin | ? | ? | ||
60 | Fixed expenses | ||||
61 | Fixed manufacturing overhead | ? | ? | ||
62 | Fixed selling and administrative expenses | ? | ? | ? | ? |
63 | Net operating income | ? | ? |
You should proceed to the requirements below only after completing your worksheet. The LIFO inventory flow assumption is used throughout this problem.
Required:
1. Check your worksheet by changing the units sold in the Data to 6,000 for Year 2. The cost of goods sold under absorption costing for Year 2 should now be $24-0.000. If it isn't check cell C41. The formula in this cell should be =IF(C26
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A
1 Chapter 7: Applying Excel
2
3 Data
4 Selling price per unit
5 Manufacturing costs:
6
7
8
Variable per unit produced:
Direct materials
Direct labor
Variable manufacturing overhead
9
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
25 Units in beginning inventory
26 Units produced during the year
27 Units sold during the year
28 Units in ending inventory
29
30 Compute the Absorption Costing Unit Product Cost
31
32 Direct materials
33 Direct labor
34 Variable manufacturing overhead
35 Fixed manufacturing overhead
36 Absorption costing unit product cost
37
19
20 Enter a formula into each of the cells marked with a ? below
21 Review Problem 1: Contrasting Variable and Absorption Costing
22
23 Compute the Ending Inventory
24
46 Compute the Variable Costing Unit Product Cost
47
48 Direct materials
49 Direct labor…
A
1 Original Data:
2
3
4
5
6
7
8
9
10
11
12 Part 1
13
14
15
16
Estimated MOH
Estimated DLHS
28
29
B
Selling price per unit
Direct materials per unit
Direct labour per unit
Direct labour-hours per unit
Estimated annual productio
POR:
17
18 Sales
19 Less product costs
20
21
22
23 Total product costs
24 Product margin
Direct materials
Direct labour
Manufacturing overhead
25 Units produced and sold:
26 Product margin per unit
27
$1,350,000
112,500
High Grade
$212.50
$83.50
$30.00
1.00
75,000
High Grade
D
Professional
$387.00
$212.00
$45.00
1.50
25,000
per DLHs
Professional
Total
2. Change all of the numbers in the data area of your worksheet so that it looks like this:
A
1 Chapter 8: Applying Excel
2
3
Data
4 Selling price per unit
5
Manufacturing costs:
6
Variable per unit produced:
7
8
9
10
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead per year
11 Selling and administrative expenses:
12
Variable per unit sold
Fixed per year
13
14
15
16
17
18
Units in beginning inventory
Units produced during the year
Units sold during the year
Net operating income
$
$
$
$
$
B
Yes
O No
399
142
74
39
170,000
Year 1
Net operating income
3
$ 98,000
O Yes
No
0
3,400
2,900
If your formulas are correct, you should get the correct answers to the following questions.
(a) What is the net operating income (loss) in Year 1 under absorption costing?
✔Units were left over from the previous year.
C
Year 2
2,500
2,900
3.
Make a note of the absorption costing net operating income (loss) in Year 2.
(b) What is the net operating income (loss) in…
Chapter 6 Solutions
MANAGERIAL ACCOUNTING LL/W ACCESS
Ch. 6.A - Prob. 1ECh. 6.A - EXERCISE 6A-2 Super-Variable Costing and Variable...Ch. 6.A - Prob. 3ECh. 6.A - PROBLEM 6A-4 Super-Variable Costing and Variable...Ch. 6.A - Prob. 5PCh. 6 - Prob. 1QCh. 6 - Are selling and administrative expenses treated as...Ch. 6 - Explain how fixed manufacturing overhead costs are...Ch. 6 - What are the arguments in favor of treating fixed...Ch. 6 - What are the arguments in favor of treating fixed...
Ch. 6 - Prob. 6QCh. 6 - Prob. 7QCh. 6 - Prob. 8QCh. 6 - Under absorption costing, how is it possible to...Ch. 6 - Prob. 10QCh. 6 - Prob. 11QCh. 6 - What costs are assigned to a segment under the...Ch. 6 - Distinguish between a trace able fixed cost and a...Ch. 6 - Explain how the contribution margin differs from...Ch. 6 - Prob. 15QCh. 6 - Prob. 16QCh. 6 - Should a company allocate its common feed costs to...Ch. 6 - A B C D E 1 Chapter 6: Applying Excel 2 3 Data 4...Ch. 6 - A B C D E 1 Chapter 6: Applying Excel 2 3 Data 4...Ch. 6 - A B C D E
1 Chapter 6: Applying...Ch. 6 - Diego Company manufactures one product that is...Ch. 6 - Prob. 2F15Ch. 6 - Prob. 3F15Ch. 6 - Prob. 4F15Ch. 6 - Prob. 5F15Ch. 6 - Diego Company manufactures one product that is...Ch. 6 - Prob. 7F15Ch. 6 - Prob. 8F15Ch. 6 - Prob. 9F15Ch. 6 - Prob. 10F15Ch. 6 - Prob. 11F15Ch. 6 - Prob. 12F15Ch. 6 - Prob. 13F15Ch. 6 - Diego Company manufactures one product that is...Ch. 6 - Prob. 15F15Ch. 6 - Prob. 1ECh. 6 - Prob. 2ECh. 6 - Prob. 3ECh. 6 - Prob. 4ECh. 6 - Prob. 5ECh. 6 - EXERCISE 6-6 Variable and Absorption Costing Unit...Ch. 6 - Prob. 7ECh. 6 - Prob. 8ECh. 6 - EXERCISE 6-9 Variable and Absorption Costing Unit...Ch. 6 - Prob. 10ECh. 6 - Prob. 11ECh. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Prob. 14ECh. 6 - EXERCISE 6—15 Absorption Costing Unit Product Cost...Ch. 6 - EXERCISE 6-16 Working with a Segmented Income...Ch. 6 - Prob. 17ECh. 6 - Prob. 18PCh. 6 - Prob. 19PCh. 6 - Prob. 20PCh. 6 - PROBLEM 6—21 Segment Reporting and Decision-Making...Ch. 6 - Prob. 22PCh. 6 - Prob. 23PCh. 6 - PROBLEM 6-24 Companywide and Segment Break-Even...Ch. 6 - Prob. 25PCh. 6 - Prob. 26PCh. 6 - PROBLEM 6-27 Incentives Created by Absorption...Ch. 6 - Prob. 28PCh. 6 - Prob. 29CCh. 6 - Prob. 30C
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- 2. Change all of the numbers in the data area of your worksheet so that it looks like this: A 1 Chapter 6: Applying Excel 2 ook 3 Data rint 456 Selling price per unit Manufacturing costs: Variable per unit produced: B C $ 296 7 Direct materials $ 104 rences 8 9 10 11 B12345 Direct labor $ 76 Variable manufacturing overhead $ 26 Fixed manufacturing overhead per year $ 184,800 Selling and administrative expenses: Variable per unit sold $ 9 Fixed per year $ 77,000 Units in beginning inventory 16 Units produced during the year 17 Units sold during the year 18 Year 1 Year 2 0 3,300 2,800 3,000 3,000 If your formulas are correct, you should get the correct answers to the following questions. (a) What is the net operating income (loss) in Year 1 under absorption costing? Net operating lossarrow_forwardBody Time, Inc., produces two basic types of weight-lifting equipment, Model 9 and Model 14. Pertinent data are as follows: (Click the icon to view the data.) The weight-lifting craze suggests that Body Time can sell enough of either Model 9 or Model 14 to keep the plant operating at full capacity. Both products are processed through the same production departments. Read the requirements. Before determining which products to produce, let's calculate the contribution margin per unit and the contribution margin per machine hour for each machine. (Reduce the fixed manufacturing overhead to the lowest possible ratio of machine hours in order to calculate the contribution margin per machine hour. Example: 8:4 would be 2:1. Enter the amounts to the nearest cent.) = Contribution margin per unit = Contribution margin per machine hour Model 9 Model 14arrow_forward1- Chapter 1 Assignment i 1 of 15 € a 19 2 Total manufacturing overhead cost Manufacturing overhead per unit 4# Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Okay 3 4 Y A Saved 11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places.) & LO 5 * Help 6 Save & Exit 7 Average Cost per Unit $7.00 $4.50 $ 1.40 $ 4.00 $4.00 $ 2.10 $ 1.10 $ 0.55 You Check my work 8 Submit 9 } 11 0 darrow_forward
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