Question
In: Accounting
2. Change all of the numbers in the data area of your worksheet so that it...
2. Change all of the numbers in the data area of your worksheet so that it looks like this:
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A B C |
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(b) What is the net operating income (loss) in Year 2 under absorption costing?
Solutions
Expert Solution
The net operating income (loss) for Year 2 under absorption costing :-
| Particulars | Amount($) | Amount($) |
| A.Revenue (Units Sold* Selling Price):(2400*$334) | 801600 | |
| Less: Cost of Sales | ||
| Opening Inventory (Units * Full cost) (200*$267) [see note1,2&3] | 53400 | |
| Direct Material (Produced Units * Direct Material cost per unit):(2300*$135) | 310500 | |
| Direct Labor (Produced Units * Direct Lobor cost per unit) : (2300*$54) | 124200 | |
| Variable Manufacturing Overhead (Produced Units * Variable Manufacturing overhead per unit) : (2300*$26) | 59800 | |
| Fixed Manufacturing Overhead (Produced Units * Fixed Manufacturing overhead per unit) : (2300*$52) [ see note 3] | 119600 | |
| less: Closing Inventory (Units * Full cost) (100*$267) [see note1,2&3] | (26700) | |
| B.Cost of Sales | 640800 | |
| C. Gorss Profit (A-B) | 160800 | |
| D.Add/(less): Over/(Under) Absorption [see note 4] | 0 | |
| E.Less: Selling & Adminstrative Expenses | ||
| Variable (Units sold * variable per unit ) (2400*$4) | 9600 | |
| Fixed per year | 58000 | 67600 |
| F. Net Operation Income as per Absorption Costing (C-D-E) | 93200 |
Notes:
1. Calculation of Opening & Closing Inventory for the 2nd Year:
| Particulars | Year 1(units) | Year 2 (units) |
| Opening Inventory |
0 |
200 |
| Add:Produced Units | 2600 | 2300 |
| Less: Sold Units | 2400 | 2400 |
| Closing Inventory | 200 | 100 |
2. Full Cost per unit:
| Particulars | Amount($) per unit |
| Direct Material | 135 |
| Direct labor | 54 |
| Variable Manufacturing Overhead | 26 |
| Fixed Manufacturing Overhead (see note 3) | 52 |
| Full Cost | 267 |
3. Fixed Manufacturing Overhead per unit =Budgeted Fixed overhead/Budgeted Units
=$119600/2300
=$52
(Budgeted data is not given therefore, actual figures are used)
4. Over /(under) Absorption=Absorbed fixed overhead- Actual Fixed overhead
=119600-119600
=0
ekkarill92 answered 1 year agoRelated Solutions
2. Change all of the numbers in the data area of your worksheet so that it...
2. Change all of the numbers in the data area of your worksheet
so that it looks like this:
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B
C
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2
3
4
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Chapter 5: Applying Excel
Data
Unit sales
30,000
units
Selling price per unit
$30
per unit
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2. Change all of the numbers in the data area of your worksheet
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C
D
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Chapter 5: Applying Excel
2
3
Data
4
Unit sales
80,000
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Chapter 3: Applying Excel
2
3
Data
4
Unit sales
30,000
units
5
Selling price per unit
$50
per unit
6
Variable expenses per unit
$20
per unit
7
Fixed expenses
$720,000
8
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2.
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3
Data
4
Selling price per unit
$374
5
Manufacturing costs:
6
Variable per unit produced:
7
Direct materials
$152
8
Direct labor
$58
9
Variable manufacturing overhead
$38
10
Fixed manufacturing overhead per year
$166,400
11
Selling and administrative expenses:
12
Variable per unit sold
$4
13
Fixed per year
$98,000
14
15
Year 1
Year 2
16
Units in...
2. Change all of the numbers in the data area of your worksheet so that it...
2.
Change all of the numbers in the data area of your worksheet so
that it looks like this:
3
Data
4
Selling price per unit
$374
5
Manufacturing costs:
6
Variable per unit
produced:
7
Direct
materials
$152
8
Direct
labor
$58
9
Variable manufacturing overhead
$38
10
Fixed
manufacturing overhead per year
$166,400
11
Selling and administrative
expenses:
12
Variable per unit
sold
$4
13
Fixed per
year
$98,000
14
15
Year 1
Year 2
16
Units in...
2. Change all of the numbers in the data area of your worksheet so that it...
2. Change all of the numbers in the data area of your worksheet
so that it looks like this:
A
B
C
1
2
3
4
5
6
7
Chapter 5: Applying Excel
Data
Unit sales
50,000
units
Selling price per unit
$20
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Variable expenses per unit
$14
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Fixed expenses
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1. Change all of the numbers in the data area of your worksheet so
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Direct materials
$125
Direct labor
$55
Variable manufacturing overhead
$23
Fixed manufacturing overhead per year
$172,800
Selling and administrative expenses:
Variable per unit sold
$7
Fixed per year
$74,000
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Year 2
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Units produced during the year
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2,700
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The company is considering a project involving the purchase of new equipment. Change the data area of your worksheet to match the following
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B
C
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2
3
4
5
6
7
8
9
10
11
12
13
Chapter 7: Applying Excel
Data
Example E
Cost of equipment needed
$360,000
Working capital needed
$30,000
Overhaul of equipment in four years
$25,000
Salvage value of the equipment in five years
$30,000
Annual revenues and costs:
Sales revenues
$430,000
Cost of goods sold
$245,000
Out-of-pocket operating costs...
Check your worksheet by changing the variable selling cost in the Data area to $900, keeping all of the other data the same as in Exhibit 1–7.
This Excel worksheet form is to be used to recreate Exhibit 1–7. The workbook, and instructions on how to complete the file, can be found in Connect.
Required:
1. Check your worksheet by changing the variable selling cost in the Data area to $900, keeping all of the other data the same as in Exhibit 1–7. If your worksheet is operating properly, the net operating income under the traditional format income statement and under the contribution format income statement should...
Requirement 2: Revise the data in your worksheet to reflect the results for the subsequent period...
Requirement 2:
Revise the data in your worksheet to reflect the results for the
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A
B
C
D
E
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Chapter 9: Applying Excel
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$16.50
q
Cost of ingredients
$6.25
q
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$10,400
Utilities
$800
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$0.20
q
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$2,200
Miscellaneous
$600
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$0.80
q
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$29,730
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