The Chapter 6 Form worksheet is to be used to create your own worksheet version of the Review Problem in the text.

Download the Applying Excel form and enter formulas in all cells that contain question marks.

For example, in cell B26 enter the formula "= B17".

After entering formulas in all of the cells that contained question marks, verify that the dollar amounts match the numbers in Review Problem 1.

The LIFO inventory flow assumption is used throughout the problem.

Check your worksheet by changing the units sold in the Data to 6,000 for Year 2. The cost of goods sold under absorption costing for Year 2 should now be $240,000. If it isnt, check cell C41. The formula in this cell should be =IF(C26

Save your completed Applying Excel form to your computer and then upload it here by clicking Browse. Next, click Save. You will use this worksheet to answer the questions in Part 2.

2. Change all of the numbers in the data area of your worksheet so that it looks like this:

If your formulas are correct, you should get the correct answers to the following questions.

(a) What is the net operating income (loss) in Year 1 under absorption costing?

Chapter 6: Applying Excel 0 Enter a formula into each of the cells marked with a ? below Review Problem 1: Contrasting Variable and Absorption Costing Compute the Ending Inventory 6 Compute the Variable Costing Unit Product Cost \begin{tabular}{l|l|r|r} \hline & Direct materials & Year 1 & Year 2 \\ 9 & Direct labor & ? & ? \\ 0 & Variable manufacturing overhead & ? & ? \\ 1 & Variable costing unit product cost & ? & ? \\ \hline \end{tabular} 3 Construct the Variable Costing Income Statement