Chuck Wagon Grills, Inc., makes a single productâa handmadespecialty barbecue grill that it sells for $215. Data for lastyearâs operations follow:
Units in beginninginventory 0 Units produced 9,900 Units sold 9,200 Units in endinginventory 700 Variable costs perunit: Direct materials $ 62 Direct labor 37 Variable manufacturingoverhead 13 Variable selling andadministrative 20 Total variable cost perunit $ 132 Fixed costs: Fixed manufacturingoverhead $ 306,900 Fixed selling andadministrative 500,000 Total fixed costs $ 806,900
Required:
1. Assume that the company uses absorption costing. Compute theunit product cost for one barbecue grill.
2. Assume that the company uses absorption costing. Prepare anincome statement.
Chuck Wagon Grills, Inc., makes a single productâa handmadespecialty barbecue grill that it sells for $215. Data for lastyearâs operations follow: |
| Units in beginninginventory | 0 | |
| Units produced | 9,900 | |
| Units sold | 9,200 | |
| Units in endinginventory | 700 | |
| Variable costs perunit: | ||
| Direct materials | $ 62 | |
| Direct labor | 37 | |
| Variable manufacturingoverhead | 13 | |
| Variable selling andadministrative | 20 | |
| Total variable cost perunit | $ 132 | |
| Fixed costs: | ||
| Fixed manufacturingoverhead | $ | 306,900 |
| Fixed selling andadministrative | 500,000 | |
| Total fixed costs | $ | 806,900 |
| Required: |
| 1. | Assume that the company uses absorption costing. Compute theunit product cost for one barbecue grill. |
| 2. | Assume that the company uses absorption costing. Prepare anincome statement. |
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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makes an oak desk specially designed for personal computers. Thedesk sells for $205. Data for last yearâs operations follow: |
| Units in beginninginventory | 0 | |
| Units produced | 9,800 | |
| Units sold | 9,300 | |
| Units in endinginventory | 500 | |
| Variable costs perunit: | ||
| Direct materials | $ 61 | |
| Direct labor | 39 | |
| Variable manufacturingoverhead | 15 | |
| Variable selling andadministrative | 20 | |
| Total variable costper unit | $ 135 | |
| Fixed costs: | ||
| Fixed manufacturingoverhead | $ | 323,400 |
| Fixed selling andadministrative | 510,000 | |
| Total fixedcosts | $ | 833,400 |
| Required: |
| 1. | Assume that the company uses absorption costing. Compute theunit product cost for one computer desk. (Round your answerto the nearest whole dollar.) |
| 2. | Assume that the company uses absorption costing. Prepare anincome statement. |
