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EXERCISE 6-14 Variable Costing Unit Product Cost and Income Statement; Break-Even [L06-1, L06-2] Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $210. Data for last year's operations follow: 20,000 19,000 1,000 Units in beginning inventory ......... Units produced ........... Units sold ........ Units in ending inventory .... Variable costs per unit: Direct materials ............ Direct labor ........... .......... Variable manufacturing overhead ...... Variable selling and administrative ..... Total variable cost per unit. $ 50 $160 Fixed costs: Fixed manufacturing overhead .. ........ Fixed selling and administrative .................. Total fixed costs .............................. $700,000 285,000 $985,000 Required: 1. Assume that the company uses variable costing. Compute the unit product cost for one barbe- cue grill. 2. Assume that the company uses variable costing. Prepare a contribution format income state- ment for the year. 3. What is the company's break-even point in terms of the number of barbecue grills sold?
EXERCISE 6-14 Variable Costing Unit Product Cost and Income Statement; Break-Even [L06-1, L06-2] Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $210. Data for last year's operations follow: 20,000 19,000 1,000 Units in beginning inventory ......... Units produced ........... Units sold ........ Units in ending inventory .... Variable costs per unit: Direct materials ............ Direct labor ........... .......... Variable manufacturing overhead ...... Variable selling and administrative ..... Total variable cost per unit. $ 50 $160 Fixed costs: Fixed manufacturing overhead .. ........ Fixed selling and administrative .................. Total fixed costs .............................. $700,000 285,000 $985,000 Required: 1. Assume that the company uses variable costing. Compute the unit product cost for one barbe- cue grill. 2. Assume that the company uses variable costing. Prepare a contribution format income state- ment for the year. 3. What is the company's break-even point in terms of the number of barbecue grills sold?
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Beverley SmithLv2
22 Aug 2018
Related questions
Chuck Wagon Grills, Inc., makes a single productâa handmadespecialty barbecue grill that it sells for $200. Data for lastyearâs operations follow: |
| Units inbeginning inventory | 0 | |
| Unitsproduced | 10,500 | |
| Unitssold | 8,500 | |
| Units inending inventory | 2,000 | |
| Variablecosts per unit: | ||
| Direct materials | $ 80 | |
| Direct labor | 20 | |
| Variable manufacturingoverhead | 10 | |
| Variable selling andadministrative | 30 | |
| Total variable cost perunit | $140 | |
| Fixedcosts: | ||
| Fixed manufacturingoverhead | $ | 160,000 |
| Fixed selling andadministrative | 170,000 | |
| Total fixed costs | $ | 330,000 |
| Required: |
| 1. | Assume that the company uses variable costing. Compute the unitproduct cost for one barbecue grill. | |||||||
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