Required information [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 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 3 0 20,000 19,000 1,000 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? $ 50 80 20 10 $ 160 Complete this question by entering your answers in the tabs below. units $ 700,000 285,000 $ 985,000 Required 2 What is the company's break-even point in terms of the number of barbecue grills sold? Break-even point Required 2
Required information [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 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 3 0 20,000 19,000 1,000 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? $ 50 80 20 10 $ 160 Complete this question by entering your answers in the tabs below. units $ 700,000 285,000 $ 985,000 Required 2 What is the company's break-even point in terms of the number of barbecue grills sold? Break-even point Required 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Can someone please explain this. I do not know how to solve for this.
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Required information
[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
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:
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 2 Required 3
0
20,000
19,000
1,000
Complete this question by entering your answers in the tabs below.
$ 50
80
20
10
$ 160
units
$ 700,000
285,000
$985,000
Required 2
What is the company's break-even point in terms of the number of barbecue grills sold?
Break-even point](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe5b66953-d8c0-491f-82b9-53ac9723ea16%2F5c4e1e2c-e121-431e-b294-f9ba7a9ec1c0%2F1ioy2y_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
[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
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:
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 2 Required 3
0
20,000
19,000
1,000
Complete this question by entering your answers in the tabs below.
$ 50
80
20
10
$ 160
units
$ 700,000
285,000
$985,000
Required 2
What is the company's break-even point in terms of the number of barbecue grills sold?
Break-even point
![Required information
[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
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 3
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?
0
20,000
19,000
1,000
Complete this question by entering your answers in the tabs below.
Sales
Variable expenses:
Variable cost of goods sold
< Required 1
$ 50
80
20
10
$ 160
$ 700,000
285,000
$985,000
Assume that the company uses variable costing. Prepare a contribution format income statement for last year.
Chuck Wagon Grills, Incorporated
Variable Costing Income Statement
$
0
0
0
0
Required 3 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe5b66953-d8c0-491f-82b9-53ac9723ea16%2F5c4e1e2c-e121-431e-b294-f9ba7a9ec1c0%2F0lg63nr_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[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
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 3
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?
0
20,000
19,000
1,000
Complete this question by entering your answers in the tabs below.
Sales
Variable expenses:
Variable cost of goods sold
< Required 1
$ 50
80
20
10
$ 160
$ 700,000
285,000
$985,000
Assume that the company uses variable costing. Prepare a contribution format income statement for last year.
Chuck Wagon Grills, Incorporated
Variable Costing Income Statement
$
0
0
0
0
Required 3 >
Expert Solution
Step 1
MARGINAL COSTING INCOME STATEMENT
Marginal Costing Income Statement is also Known as Contribution Margin Income Statement. Marginal Costing Income Statement is One of the Important Cost Management Accounting Techniques.
Under Marginal Costing Income Statement, Net Income is Computed by deducting Total Fixed Cost from Total Contribution Margin.
Contribution Margin is Computed by deducting Total Variable Cost From Total Sales.
PRODUCT COST
Product Cost are those Cost which is associates with the Manufacturing of Product.
Product Cost Includes Direct Material, Direct Labour, indirect Labour Cost, indirect Material, consumable production, supplies, Manufacturing OH etc
BREAKEVEN POINT
Break Even means the volume of production or sales where there is no profit or loss.
In other words, Break Even Point is the volume of production or sales where total costs are equal to revenue.
Breakeven Point in Units
= Fixed Cost ÷ Contribution Margin Per Unit
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