Part 2: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Full Variable tab), complete thecalculations listed below.• Calculate the value of ending inventory under full or absorption costing.• Calculate the value of ending inventory under variable costing.Which method you think is more helpful to managers and why. Cookie Business Productions Costs: Direct material $ 0.60Direct labor $ 1.00Variable manufacturing overhead $ 0.40Total 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 $ 50,000.00Fixed administrative costs per year $ 65,000.00 Selling price per cookie $ 3.75 Number of cookies produced 2,780,000Number of cookies sold 2,600,000 Full (absorption) costing : Full cost per unit Ending Inventory Full (absorption) costing Variable costing : Variable cost per unit Ending Inventory Variable costing

Name: Part 2: Based on the data presented in the Unit VII Spreadsheet Templa
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Description: Part 2: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Full Variable tab), complete thecalculations listed below.• Calculate the value of ending inventory under full or absorption costing.• Calculate the value of ending in

Absorption costing also known as full costing, takes into consideration all the fixed and variable…

Answered: calculations listed below. • Calculate…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.
Which method you think is more helpful to managers and why.

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
Ending Inventory Full (absorption) costing

Variable costing :
Variable cost per unit
Ending Inventory Variable costing

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