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 20,800 19,400 1,400 $ 50 80 20 10 $ 160 $ 728,000 291,000 $ 1,019,000 mequired: 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. What is the company's break-even point in terms of the number of barbecue grills sold?
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 20,800 19,400 1,400 $ 50 80 20 10 $ 160 $ 728,000 291,000 $ 1,019,000 mequired: 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. What is the company's break-even point in terms of the number of barbecue grills sold?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
20,800
19,400
1,400.
$ 50
80
20
10
$ 160
$ 728,000
291,000
$ 1,019,000
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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdd1e6fb3-a3bb-45a5-8140-9e7ea4ef5a8e%2F09def540-08db-43d5-aa59-5bfe63b7892b%2F3m5meqn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[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
20,800
19,400
1,400.
$ 50
80
20
10
$ 160
$ 728,000
291,000
$ 1,019,000
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?
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