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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 $

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter12: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 4SEQ: For which cost concept used in applying (he cost-plus, approach to product pricing are fixed...
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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
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 $
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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