can you please solve this question for me and show me what formulaes to apply and showing all the calculations on excel, answering it in detail for a $10$ marker question

Following is financial information for Telcap Company, which manufactures and sells one

single product, with the following details:

$$

Variable cost per unit:

Direct Materials $

$6\mathrm{.}00$

$$

Direct Labour $

$15\mathrm{.}00$

$$

Variable Manufacturing Overhead $

$2\mathrm{.}00$

$$

Variable Selling & Administrative Expenses $

$3\mathrm{.}00$

$$

Total variable costs $

$26\mathrm{.}00$

$$

$$

Fixed cost per year:

Fixed Manufacturing Overhead $

$160$

$,$

$000$

$$

Fixed Selling & Administrative Expenses $

$500$

$,$

$000$

$$

Total fixed costs $

$660$

$,$

$000$

$$

$$

In the year just ended,

$80$

$,$

$000$

$$units were produced and

$60$

$,$

$000$

$$units were sold. The Finished Goods Inventory

account at the end of the year shows a balance of $

$460$

$,$

$000$

$.$

$$Work in Process Inventory is insignificant and can be ignored.

$$

$$

Required:

$1$

$.$

$$At this time, is the company using absorption costing or variable costing?

$$Show any detailed calculations as required to support your answer.

$$

$2$

$.$

$$Assume the company wants to prepare financial statements for the year to issue to its shareholders.

$$At what dollar amount should the Finished Goods ending inventory be carried at for external reporting purposes?

$$

Please note: You must show how all calculations below, using Excel as calculator, using any applicable formulas.

Simply typing a $

$-$

amount as final answer without demonstrating calculation steps taken to get to the answer will result in a mark of zero.

Simply copy

$/$

pasting a solution from an AI tool without explicitly showing how the answer was obtained or simply listing out

generic formulas will result in a mark of zero.

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