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 Required 1 Required 2 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. Sales Cost of goods sold Gross margin Complete this question by entering your answers in the tabs below. Selling and administrative expenses Net operating income(loss) 0 20,000 19,000 1,000 $ 50 80 20 10 $ 160 > Answer is complete but not entirely correct. Assume that the company uses absorption costing. Prepare an income statement for last year. Chuck Wagon Grills, Incorporated Absorption Costing Income Statement ✓ S $ $ 700,000 285,000 $ 985,000 3,990 X 3,515 X 475 475 X 0
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 Required 1 Required 2 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. Sales Cost of goods sold Gross margin Complete this question by entering your answers in the tabs below. Selling and administrative expenses Net operating income(loss) 0 20,000 19,000 1,000 $ 50 80 20 10 $ 160 > Answer is complete but not entirely correct. Assume that the company uses absorption costing. Prepare an income statement for last year. Chuck Wagon Grills, Incorporated Absorption Costing Income Statement ✓ S $ $ 700,000 285,000 $ 985,000 3,990 X 3,515 X 475 475 X 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
Required 1 Required 2
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.
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses
Net operating income(loss)
Complete this question by entering your answers in the tabs below.
$
0
20,000
19,000
1,000
$ 50
80
20
10
$ 160
Answer is complete but not entirely correct.
Assume that the company uses absorption costing. Prepare an income statement for last year.
Chuck Wagon Grills, Incorporated
Absorption Costing Income Statement
$
3,990 x
3,515 x
475
$ 700,000
285,000
$ 985,000
475 X
0
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