1. Assume that the company uses absorption costing. Compute the unit product cost for one barbecue grill 2. Assume that the company uses absorption costing. Prepare an income statement for last year.
1. Assume that the company uses absorption costing. Compute the unit product cost for one barbecue grill 2. Assume that the company uses absorption costing. Prepare an income statement for last year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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[The following information applies to the questions displayed below]
Chuck Wagon Grills, Incorporated, makes a single product-a handmade specialty barbecue grill that it sells for $210. Data
for last year's operations follow:
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
Fixed costs:
Fixed manufacturing overhead
Fixed selling and administrative
Total fixed costs.
0
22,800
20,400
2,400
$ 50
80
20
10
$ 160
$ 798,000
306,000
$ 1,104,000
Required:
1. Assume that the company uses absorption costing. Compute the unit product cost for one barbecue grill
2. Assume that the company uses absorption costing. Prepare an income statement for last year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe909139c-4e08-4302-ac1f-b75bbd6b9a06%2F24145c58-b5ab-4ba1-adb1-30b9670971fd%2F8jyaw1_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below]
Chuck Wagon Grills, Incorporated, makes a single product-a handmade specialty barbecue grill that it sells for $210. Data
for last year's operations follow:
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
Fixed costs:
Fixed manufacturing overhead
Fixed selling and administrative
Total fixed costs.
0
22,800
20,400
2,400
$ 50
80
20
10
$ 160
$ 798,000
306,000
$ 1,104,000
Required:
1. Assume that the company uses absorption costing. Compute the unit product cost for one barbecue grill
2. Assume that the company uses absorption costing. Prepare an income statement for last year.
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