SB Exercise 6-14 through Exercise 6-15 (Algo) [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 28,000 23,000 5,000 $50 80 20 10 $ 160 $ 980,000 345,000 $ 1,325,000 Exercise 6-15 (Algo) Absorption Costing Unit Product Cost and Income Statement [LO6-1, LO6-2] Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one barbecue grill. 2. Assume that the company uses absorption costing. Prepare an income statement for last year.
SB Exercise 6-14 through Exercise 6-15 (Algo) [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 28,000 23,000 5,000 $50 80 20 10 $ 160 $ 980,000 345,000 $ 1,325,000 Exercise 6-15 (Algo) Absorption Costing Unit Product Cost and Income Statement [LO6-1, LO6-2] Required: 1. Assume that the company uses absorption costing. Compute the unit product cost for one barbecue grill. 2. Assume that 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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Give me correct answer with explanation
![SB Exercise 6-14 through Exercise 6-15 (Algo)
[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
28,000
23,000
5,000
$50
80
20
10
$ 160
$ 980,000
345,000
$ 1,325,000
Exercise 6-15 (Algo) Absorption Costing Unit Product Cost and Income Statement [LO6-1, LO6-2]
Required:
1. Assume that the company uses absorption costing. Compute the unit product cost for one barbecue grill.
2. Assume that 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%2F301798f6-0af1-4c04-a44f-161d66362297%2F39e6506e-cec7-4086-a999-91865fb027c9%2Fxawomtw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:SB Exercise 6-14 through Exercise 6-15 (Algo)
[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
28,000
23,000
5,000
$50
80
20
10
$ 160
$ 980,000
345,000
$ 1,325,000
Exercise 6-15 (Algo) Absorption Costing Unit Product Cost and Income Statement [LO6-1, LO6-2]
Required:
1. Assume that the company uses absorption costing. Compute the unit product cost for one barbecue grill.
2. Assume that the company uses absorption costing. Prepare an income statement for last year.
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