EXERCISE 2-10 Cost Behavior; Contribution Format Income Statement [LO2-4, LO2-6] Harris Company manufactures and sells a single product. A partially completed schedule of the company's total and per unit costs over the relevant range of 30,000 to 50,000 units produced and sold annually is given below: Units Produced and Sold 30,000 40,000 50,000 $180,000 300,000 $480.000 Total costs: Variable costs ..... Fixed costs ....... Total costs .......... Cost per unit: Variable cost .... Fixed cost ........ Total cost per unit .... | ww lol Required: 1. Complete the schedule of the company's total and unit costs above. 2. Assume that the company produces and sells 45,000 units during the year at a selling price of $16 per unit. Prepare a contribution format income statement for the year.

Question


Units in beginning inventory		0
Units produced		10,000
Units sold		8,800
Units in ending inventory		1,200
Variable costs per unit:
Direct materials	$	60
Direct labor		40
Variable manufacturing overhead		10
Variable selling and administrative		30
Total variable cost per unit	$	140
Fixed costs:
Fixed manufacturing overhead	$	180,000
Fixed selling and administrative		330,000
Total fixed costs	$	510,000

Chuck Wagon Grills, Inc.
Variable Costing Income Statement

Variable expenses:



		0
		0
Fixed expenses:



		0

Unlock all answers

Related questions

Related Documents

ACC 200 Lecture Notes - Lecture 7: Income Statement, Earnings Before Interest And Taxes, Fixed Cost

ACC 406 Lecture Notes - Lecture 2: Cost Driver, Management Accounting, Fixed Cost

ACC 406 Lecture Notes - Lecture 2: Contribution Margin, Operating Leverage, Earnings Before Interest And Taxes

Weekly leaderboard