I need some recommendations on what applications I should use within the office suite for what I'm trying to accomplish.  I would say I have an above average understanding of Microsoft office, in case that helps with your recommendations. 

My goal: to be able to enter data such as room sizes and have it automatically calculate wall and ceiling dimensions and then put this information into a written paragraph.

Example: I'll give you an example of what I would write for a quick bid summary and ultimately what I need the information to output to, "This line item includes painting 2 coats, using kilz paint, on approximately 1136 Sq Ft of wall area.  Rooms with walls to be painted include the living room (15x15x8), first floor hallway (15x4x8), and second floor bedroom (10x12x8)."

So the paragraph template would look something like, "This line item includes painting 2 coats, using kilz paint, on approximately ((BLANK)) of wall area.  Rooms with walls to be painted include the ((BLANK))((BLANK))."

I'm not quite sure how I would go about doing this, but I feel like this is something I could use office for to accomplish.  Maybe use excel to input the room data and then have it somehow output it's calculations to a template paragraph I create.  I'm not sure though on what the best way to do this would be so I thought I'd reach out for help.  I appreciate any recommendations or advice you can offer me. Thank you!

Assuming you know how to do the math in Excel and you are not planning on making this much more advanced. Use Excel.

You can string together text and the numbers from your calculations like this: 
="Some text " & E2 & "More text" & E6 & "Even more text"