Part 2: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Full Variable tab), complete the calculations listed below.

• Calculate the value of ending inventory under full or absorption costing.
• Calculate the value of ending inventory under variable costing.

Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss the results, and comment on which method you think is more helpful to managers and why.

This is a 5301 Mangerial Applications of Accounting course.

Cookie Business
Productions Costs:
Direct material	$ 0.60
Direct labor	$ 1.00
Variable manufacturing overhead	$ 0.40
Total variable manufacturing costs per unit	$ 2.00
Fixed manufacturing overhead per year	$ 139,000.00
In addition, the company has fixed selling and administrative costs:
Fixed selling costs per year	$ 50,000.00
Fixed administrative costs per year	$ 65,000.00
Selling price per cookie	$ 3.75
Number of cookies produced	2,780,000
Number of cookies sold	2,600,000
Full (absorption) costing :
Full cost per unit	$ 2.05
Ending Inventory Full (absorption) costing	$ 369,000
Variable costing :
Variable cost per unit	$ 2.00
Ending Inventory Variable costing	$ 360,000