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 @ 24,400 21, 200 3,200 $50 80 20 18 $ 160 $ 854,000 318,000 $ 1,172,000 Required: 1. Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill. 2. Assume that the company uses varlable 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 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 @ 24,400 21, 200 3,200 $50 80 20 18 $ 160 $ 854,000 318,000 $ 1,172,000 Required: 1. Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill. 2. Assume that the company uses varlable 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
=
0
24,488
21,200
3,200
$ 50
80
23
18
$ 168
$ 854,388
319,808
$ 1,172,000
#₂
Required:
1. Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill.
2. Assume that the company uses varlable 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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4cf9133d-2dd4-45f6-b833-be7167a81438%2F85cbb713-47bf-4eee-9886-ca8b61eb51a7%2F3ebq463_processed.jpeg&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
=
0
24,488
21,200
3,200
$ 50
80
23
18
$ 168
$ 854,388
319,808
$ 1,172,000
#₂
Required:
1. Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill.
2. Assume that the company uses varlable 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?
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Sales
Variable expenses:
Assume that the company uses variable costing. Prepare a contribution format income statement for last year.
Chuck Wagon Grills, Incorporated
Variable Costing Income Statement
Required 3
Variable cost of goods sold
Variable selling and administrative expenses
Contribution margin
Fixed expenses:
* Answer is not complete.
Fixed manufacturing overhead
Fixed selling and administrative expenses
Net operating loss
$ 212,000
854,000
318.000
Required 1
S
4,452,000
212.000
4.240,000
1,172,000
3.068.000
Required 3
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