Excel Function Video: How to multiply, divide, and subtract amounts in Excel

Introduction to Calculations in Excel

• Overview of numeric operations: subtraction, multiplication, and division in Excel.

• Example application using a job cost sheet for 500 units of a product.

Subtracting Values

• Objective: Determine the missing amount in cell B11 by using subtraction.

• Steps to perform subtraction:

  • Place the mouse pointer in cell B11.

  • Cell B12 shows the total of direct materials from cells B8 to B11.

  • To calculate B11:

    • Begin with an equal sign in cell B11.

    • Select cell B12.

    • Use the dash (-) for subtraction:

      • Select cell B8, press (-), select B9, press (-), select B10.

  • Press Enter to finalize the formula.

  • Result: Cell B11 displays missing materials as $2,400.

  • Formula viewed in formula bar: =B12-B8-B9-B10.

Multiplying Values

• Objective: Calculate the missing manufacturing overhead in cell D10.

• Steps to perform multiplication:

  • Click in cell D10 and begin with an equal sign.

  • Select cell C10 (direct labor cost).

  • Use the asterisk (*) for multiplication.

  • Enter the overhead rate: type 0.90 (90%).

  • Press Enter to complete the formula.

  • Result: Cell D10 shows overhead amount as $6,300.

  • Formula in formula bar: =C10*0.90.

Automatic Updates with Totals

• Note on Totals: Totals in column E and row 12 are updated automatically based on changes in B11 and D10.

Dividing Values

• Objective: Determine the unit cost of each product in cell E16.

• Steps to perform division:

  • Click in cell E16 and start with an equal sign.

  • Select cell E14 (total cost of the job).

  • Use a forward slash (/) for division.

  • Select cell E15 (number of units).

  • Press Enter to finalize the calculation.

  • Result: Cell E16 calculates the unit cost as $92.40.

  • Formula in the formula bar: =E14/E15.

Conclusion

• Mastery of basic operations in Excel enables effective calculation management in job costing sheets.