Required information [The following information applies to the questions displayed below.] Chuck Wagon Grills, Incorporated, makes a barbecue grill 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 24,000 21,000 3,000 $50 80 20 10 $ 160 $ 840,000 315,000 $ 1,155,000 Required: 1. Assume the company uses absorption costing. Compute the unit product cost for one barbecue grill. 2. Assume the company uses absorption costing. Prepare an income statement for last year.
Required information [The following information applies to the questions displayed below.] Chuck Wagon Grills, Incorporated, makes a barbecue grill 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 24,000 21,000 3,000 $50 80 20 10 $ 160 $ 840,000 315,000 $ 1,155,000 Required: 1. Assume the company uses absorption costing. Compute the unit product cost for one barbecue grill. 2. Assume the company uses absorption costing. Prepare an income statement for last year.
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 barbecue grill 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
24,000
21,000
3,000
$50
80
20
10
$ 160
$ 840,000
315,000
$ 1,155,000
Required:
1. Assume the company uses absorption costing. Compute the unit product cost for one barbecue grill.
2. Assume the company uses absorption costing. Prepare an income statement for last year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F59d53c11-6f52-4e43-8165-43811a35c0a7%2Ff4a7cb3f-2644-4923-8223-3bb909502d61%2Fzch8lp9_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 barbecue grill 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
24,000
21,000
3,000
$50
80
20
10
$ 160
$ 840,000
315,000
$ 1,155,000
Required:
1. Assume the company uses absorption costing. Compute the unit product cost for one barbecue grill.
2. Assume the company uses absorption costing. Prepare an income statement for last year.
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