Required information [The following information applies to the questions displayed below.] Chuck Wagon Grills, Inc., 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 26,000 22,000 4,000 Units sold Units in ending inventory Variable costs per unit: Direct materials 24 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 $ 910,000 330,000 $1,240, еее Total fixed costs 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? Required 1 Required 2 Required 3 Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill. Unit product cost Required 1 Required 2 Required 3 Assume that the company uses variable costing. Prepare a contribution format income statement for last year. Chuck Wagon Grills, Inc. Variable Costing Income Statement $
Required information [The following information applies to the questions displayed below.] Chuck Wagon Grills, Inc., 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 26,000 22,000 4,000 Units sold Units in ending inventory Variable costs per unit: Direct materials 24 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 $ 910,000 330,000 $1,240, еее Total fixed costs 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? Required 1 Required 2 Required 3 Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill. Unit product cost Required 1 Required 2 Required 3 Assume that the company uses variable costing. Prepare a contribution format income statement for last year. Chuck Wagon Grills, Inc. Variable Costing Income Statement $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Required 1
Required 2
Redo the company's income statement in the contribution format using variable costing.
Whitman Company
Variable Costing Income Statement
Required 1
Required 2
Reconcile any difference between the net operating income on your variable costing income statement and the net operating
Income on the absorptlon costing Income statement above. (Enter any losses or deductions as a negative value.)
Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes
Variable costing net operating income
Absorption costing net operating income
![Required information
[The following information applies to the questions displayed below.]
Chuck Wagon Grills, Inc., 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
26,000
22,000
4,000
Units sold
Units in ending inventory
Variable costs per unit:
Direct materials
24
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
$ 910,000
330,000
Total fixed costs
$1,240,000
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?
Required 1
Required 2
Required 3
Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill.
Unit product cost
Required 1
Required 2
Required 3
Assume that the company uses variable costing. Prepare a contribution format income statement for last year.
Chuck Wagon Grills, Inc.
Variable Costing Income Statement
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F92affe68-fd69-4f24-8f44-770e14428e69%2F03c536a0-c7a5-43d9-9eb9-0153910b6f60%2Fznt0udl_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Chuck Wagon Grills, Inc., 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
26,000
22,000
4,000
Units sold
Units in ending inventory
Variable costs per unit:
Direct materials
24
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
$ 910,000
330,000
Total fixed costs
$1,240,000
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?
Required 1
Required 2
Required 3
Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill.
Unit product cost
Required 1
Required 2
Required 3
Assume that the company uses variable costing. Prepare a contribution format income statement for last year.
Chuck Wagon Grills, Inc.
Variable Costing Income Statement
$
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