Data Selling price per unit Manufacturing costs: Variable per unit produced: Direct materials Direct labor Variable manufacturing overhead Selling and administrative expenses: Variable per unit sold $50 $11 $6 $3 Fixed manufacturing overhead per year $120,000 $4 Fixed per year Units in beginning inventory Units produced during the year Units sold during the year $70,000 Year 1 Year 2 0 10,000 6,000 8,000 8,000 Enter a formula into each of the cells marked with a ? below Review Problem 1: Contrasting Variable and Absorption Costing Compute the Ending Inventory Year 1 Year 2 Units in beginning inventory ? Units produced during the year ? ? Units sold during the year ? ? Units in ending inventory ? ? Compute the Absorption Costing Unit Product Cost Year 1 Year 2 Direct materials ? ? Direct labor ? ? Variable manufacturing overhead ? ? Fixed manufacturing overhead ? Absorption costing unit product cost ? ? Construct the Absorption Costing Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Compute the Variable Costing Unit Product Cost Direct materials Direct labor Variable manufacturing overhead Variable costing unit product cost Year 1 Year 2 ? ? ? ? ? ? ? ? ? ? Year 1 Year 2 ? ? ? ? ? ? ? Construct the Variable Costing Income Statement Sales Variable expenses: Variable cost of goods sold Variable selling and administrative expenses Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses Net operating income Year 1 Year 2 ? ? 22 ? ? ? ? ? ? ? 22