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 28,000 23,000 5,000 $50 80 20 10 $ 160 $ 980,000 345,000 $ 1,325,000 Exercise 6-14 (Algo) Variable Costing Unit Product Cost and Income Statement; Break-Even Analysis [LO6-1, LO6-2] 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?
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 28,000 23,000 5,000 $50 80 20 10 $ 160 $ 980,000 345,000 $ 1,325,000 Exercise 6-14 (Algo) Variable Costing Unit Product Cost and Income Statement; Break-Even Analysis [LO6-1, LO6-2] 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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![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
28,000
23,000
5,000
$50
80
20
10
$ 160
$ 980,000
345,000
$ 1,325,000
Exercise 6-14 (Algo) Variable Costing Unit Product Cost and Income Statement; Break-Even Analysis
[LO6-1, LO6-2]
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%2Ff145781f-4e77-485d-a703-185aa783df6e%2Fb174eccb-faff-4429-9913-0088f9eeada7%2Fwdzia6c_processed.png&w=3840&q=75)
Transcribed Image Text: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
28,000
23,000
5,000
$50
80
20
10
$ 160
$ 980,000
345,000
$ 1,325,000
Exercise 6-14 (Algo) Variable Costing Unit Product Cost and Income Statement; Break-Even Analysis
[LO6-1, LO6-2]
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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