Chuck Wagon Grills, Incorporated, makes a barbecue grill 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 20,000 19,000 1,000 $ 50 80 20 10 $ 160 $ 700,000 285,000 $ 985,000 Required: 1. Assume the company uses variable costing. Compute the unit product cost for one barbecue grill. 2. Assume the company uses variable costing. Prepare a contribution format income statement for last year. 3. How many barbecue grills must be sold to break even?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Chuck Wagon Grills, Incorporated, makes a barbecue grill 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
20,000
19,000
1,000
$ 50
80
20
10
$ 160
$ 700,000
285,000
$ 985,000
Required:
1. Assume the company uses variable costing. Compute the unit product cost for one barbecue grill.
2. Assume the company uses variable costing. Prepare a contribution format income statement for last year.
3. How many barbecue grills must be sold to break even?
Transcribed Image Text:Chuck Wagon Grills, Incorporated, makes a barbecue grill 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 20,000 19,000 1,000 $ 50 80 20 10 $ 160 $ 700,000 285,000 $ 985,000 Required: 1. Assume the company uses variable costing. Compute the unit product cost for one barbecue grill. 2. Assume the company uses variable costing. Prepare a contribution format income statement for last year. 3. How many barbecue grills must be sold to break even?
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