Chuck Wagon Grills, Incorporated, makes a single product-a handmade specialty barbecue grill that itsells for $210. Data for last year's operations follow:Units in beginning inventoryUnits produced20,00019,000Units soldUnits in ending inventoryVariable costs per unit:1,000Direct materials$ 50Direct labor80Variable manufacturing overheadVariable selling and administrative2010Total variablcost per unit$ 160Fixed costs:Fixed manufacturing overheadFixed selling and administrative$ 700,000285,000$ 985,000Total fixed costsRequired: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?

Solution 1: Computation of Unit Product Cost - Variable Costing Particulars Per unit Unit…

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 20,000 19,000 1,000 Units sold Units in ending inventory Variable costs per unit: Direct materials $ 50 Direct labor 80 Variable manufacturing overhead Variable selling and administrative 20 10 Total variable cost per unit $ 160 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 700,000 285,000 Total fixed costs $ 985,000 aired: sume that the company uses variable costing. Compute the unit product cost for one barbecue grill. sume that the company uses variable costing. Prepare a contribution format income statement for last yea hat 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 20,000 19,000 1,000 Units sold Units in ending inventory Variable costs per unit: Direct materials $ 50 Direct labor 80 Variable manufacturing overhead Variable selling and administrative 20 10 Total variable cost per unit $ 160 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 700,000 285,000 Total fixed costs $ 985,000 aired: sume that the company uses variable costing. Compute the unit product cost for one barbecue grill. sume that the company uses variable costing. Prepare a contribution format income statement for last yea hat is the company's break-even point in terms of the number of barbecue grills sold?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $752. Selected data for the company's operations last year 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 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 0 15,000 12,000 3,000 1. Absorption costing unit product cost 2. Variable costing unit product cost $ 170 $340 $ 57 $ 20 $ 830,000 $ 970,000 Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan.
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $917. Selected data for the company's operations last year 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 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative 0 13,000 9,000 4,000 1. Absorption costing unit product cost 2. Variable costing unit product cost $ 210 $ 440 $ 58 $18 $ 770,000 $ 550,000 Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) 2. Assume that the company uses variable costing. Compute the unit product cost for one gamelan.
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $845, Selected data for the company's operations last year 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 Fixed costs : Fixed manufacturing overhead Fixed selling and administrative 19,000 16,000 3,000 $ 260 $ 340 $ 57 $ 22 $ 910,000 $ 930,000 Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) 2. Assume that the company uses variable costing. Compute the unit product cost for one gahelan. 1. Absorption costing unit product cost 2. Variable costing unit product cost
Trainor Incorporated, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 112 Units in beginning inventory 0 Units produced 4,900 Units sold 4,500 Units in ending inventory 400 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 19 $ 45 $ 6 $ 9 Fixed costs: Fixed manufacturing overhead $ 1,17,600 Fixed selling and administrative $ 22,500 What is the net operating income for the month under absorption costing? A. ($19,600) B. $9,600 C. $8,400 D. $18,000
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $990. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 200 Units sold 180 Units in ending inventory 20 Variable costs per unit: Direct materials $ 120 Direct labor $ 340 Variable manufacturing overhead $ 40 Variable selling and administrative $ 30 Fixed costs: Fixed manufacturing overhead $ 56,000 Fixed selling and administrative $ 24,000 The absorption costing income statement prepared by the company’s accountant for last year appears below: Sales $ 178,200 Cost of goods sold 140,400 Gross margin 37,800 Selling and administrative expense 29,400 Net operating income $ 8,400 Required: 1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of…
[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 0 26,800 Units produced Units sold 22,400 4,400 Units in ending inventory Variable costs per unit: Direct materials Direct labor $ 50 80 20 Variable manufacturing overhead Variable selling and administrative 10 Total variable cost per unit $ 160 Fixed costs: Fixed manufacturing overhead $ 938,000 336,000 Fixed selling and administrative Total fixed costs $ 1,274,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume that the company uses absorption costing. Prepare an income…