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Chapter 6 Solutions Manual Content
6-1
Chapter 6: Applying Excel
The completed worksheet is shown below.
Chapter 6 Solutions Manual Content
6-2
Chapter 6: Applying Excel (continued)
The completed worksheet, with formulas displayed, is shown below.
Note: This worksheet assumes that the beginning inventory in Year 1 is
zero. If this were not true, the worksheet would have to be modified. Also
note that the formula in Cell C41 contains an IF statement because of the
LIFO inventory flow assumption that is used throughout the chapter.
Chapter 6 Solutions Manual Content
6-3
Chapter 6: Applying Excel (continued)
1. When the units sold in Year 2 are changed to 6,000, the result is:
Chapter 6 Solutions Manual Content
6-4
Chapter 6: Applying Excel (continued)
Chapter 6 Solutions Manual Content
6-5
Chapter 6: Applying Excel (continued)
2. With the changes in the data, the worksheet should look like this:
Chapter 6 Solutions Manual Content
6-6
Chapter 6: Applying Excel (continued)
The variable costing net operating income is the same in Year 1 and
Chapter 6 Solutions Manual Content
6-7
Chapter 6: Applying Excel (continued)
3. With the increase in units produced in Year 2, the result is:
Chapter 6 Solutions Manual Content
6-8
Chapter 6: Applying Excel (continued)
Increasing the production in Year 2 to 50,000 units while keeping
everything else the same—including the unit sales—would result in
