Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $300.D year's operations follow: Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials 9,900 8,800 1,100 80 Direct labor 20 Variable manufacturing overhead Variable selling and administrative 10 30 Total variable cost per unit 140 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 190,000 1,170,000 $1, 360,000 Total fixed costs
Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $300.D year's operations follow: Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials 9,900 8,800 1,100 80 Direct labor 20 Variable manufacturing overhead Variable selling and administrative 10 30 Total variable cost per unit 140 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 190,000 1,170,000 $1, 360,000 Total fixed costs
Chapter1: Financial Statements And Business Decisions
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
Transcribed Image Text:Required:
1. Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill.
2. Assume that the company uses variable costing. Prepare a contribution format income statement for last year.
3. What is the company's break-even point in terms of the number of barbecue grills sold?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Assume that the company uses variable costing. Prepare a contribution format income statement for last year.
Chuck Wagon Grills, Inc.
Variable Costing Income Statement

Transcribed Image Text:Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $300. Data
year's operations follow:
Units in beginning inventory
Units produced
Units sold
Units in ending inventory
Variable costs per unit:
9,900
8,800
1,100
Direct materials
80
Direct labor
20
Variable manufacturing overhead
Variable selling and administrative
10
30
Total variable cost per unit
140
Fixed costs:
Fixed manufacturing overhead
Fixed selling and administrative
$ 190,000
1,170,000
$1,360, 000
Total fixed costs
Required:
1. Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill.
2. Assume that the company uses variable costing. Prepare a contribution format income statement for last year.
3. What is the company's break-even point in terms of the number of barbecue grills sold?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill.
Unit product cost
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