Question

Please prepare a workbook file using the information given below. The file should have three worksheets. The first worksheet must contain only the inputs to the problem. These facts will be referenced by the second and third worksheets that contain the transformation of the inputs into the solutions to the problem. The second worksheet must contain: a) unit product cost under absorption costing for May; b) unit product cost under absorption costing for June; c) an income statement in good form for the month of May under absorption costing; d) an income statement in good form for the month of June under absorption costing. The third worksheet must contain: a) unit product cost under variable costing for May; b) unit product cost under variable costing for June; c) an income statement in good form for the month of May under variable costing; d) an income statement in good form for the month of June under variable costing; e) reconciliation of net income under absorption and variable costing for the month of May; f) reconciliation of net income under absorption and variable costing for the month of June. For requirements e and f, please create a matrix based on the table shown on page 336.

Actual Costing
	May	June
FG BB in units	$0	?
Unit production volume	4,800	4,400
Unit sales volume	4,000	4,800
Variable Costs:
manufacturing cost per unit produced	$4,000	$4,000
marketing cost per unit sold	$2,000	$2,400
Fixed Costs:
manufacturing total cost	$21,120,000	$21,120,000
marketing total cost	$6,000,000	$6,000,000
Unit sales price	$19,600	$19,600
Cost flow assumption: FIFO

Reconciliation Absorption to Variable Costing Operating Income
		minus		equals		minus
May
June

Answer 1