Question

In: Accounting

Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for...

Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for $200. Data for last year’s operations follow: Units in beginning inventory 0 Units produced 9,700 Units sold 8,800 Units in ending inventory 900 Variable costs per unit: Direct materials $ 80 Direct labor 20 Variable manufacturing overhead 10 Variable selling and administrative 30 Total variable cost per unit $ 140 Fixed costs: Fixed manufacturing overhead $ 170,000 Fixed selling and administrative 130,000 Total fixed costs $ 300,000 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?

Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill.
Unit product cost

Assume that the company uses variable costing. Prepare a contribution format income statement for last year.
Chuck Wagon Grills, Inc.
Variable Costing Income Statement

What is the company’s break-even point in terms of the number of barbecue grills sold?
Break-even point units

Solutions

Expert Solution

Feedback is welcomed.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for...
Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for $200. Data for last year’s operations follow:    Units in beginning inventory 0 Units produced 10,400 Units sold 8,100 Units in ending inventory 2,300 Variable costs per unit: Direct materials $ 60 Direct labor 20 Variable manufacturing overhead 10 Variable selling and administrative 30 Total variable cost per unit $ 120 Fixed costs: Fixed manufacturing overhead $ 170,000 Fixed selling and administrative 470,000 Total...
Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for...
Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for $200. Data for last year’s operations follow:    Units in beginning inventory 0 Units produced 10,300 Units sold 9,000 Units in ending inventory 1,300 Variable costs per unit: Direct materials $ 80 Direct labor 40 Variable manufacturing overhead 10 Variable selling and administrative 30 Total variable cost per unit $ 160 Fixed costs: Fixed manufacturing overhead $ 200,000 Fixed selling and administrative 20,000 Total...
Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for...
Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for $300. Data for last year’s operations follow: Units in beginning inventory 0 Units produced 10,000 Units sold 8,300 Units in ending inventory 1,700 Variable costs per unit: Direct materials $ 80 Direct labor 20 Variable manufacturing overhead 10 Variable selling and administrative 30 Total variable cost per unit $ 140 Fixed costs: Fixed manufacturing overhead $ 180,000 Fixed selling and administrative 1,020,000 Total fixed...
Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for...
Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for $300. Data for last year’s operations follow: Units in beginning inventory 0 Units produced 10,000 Units sold 8,600 Units in ending inventory 1,400 Variable costs per unit: Direct materials $ 80 Direct labor 20 Variable manufacturing overhead 10 Variable selling and administrative 30 Total variable cost per unit $ 140 Fixed costs: Fixed manufacturing overhead $ 160,000 Fixed selling and administrative 800,000 Total fixed...
Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for...
Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for $300. Data for last year’s operations follow:    Units in beginning inventory 0 Units produced 10,100 Units sold 8,400 Units in ending inventory 1,700 Variable costs per unit: Direct materials $ 80 Direct labor 20 Variable manufacturing overhead 10 Variable selling and administrative 30 Total variable cost per unit $ 140 Fixed costs: Fixed manufacturing overhead $ 180,000 Fixed selling and administrative 1,180,000 Total...
Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for...
Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for $200. Data for last year’s operations follow:    Units in beginning inventory 0 Units produced 10,400 Units sold 8,700 Units in ending inventory 1,700 Variable costs per unit: Direct materials $ 60 Direct labor 20 Variable manufacturing overhead 10 Variable selling and administrative 30 Total variable cost per unit $ 120 Fixed costs: Fixed manufacturing overhead $ 190,000 Fixed selling and administrative 490,000 Total...
Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for...
Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for $300. Data for last year’s operations follow:    Units in beginning inventory 0 Units produced 10,300 Units sold 8,800 Units in ending inventory 1,500 Variable costs per unit: Direct materials $ 80 Direct labor 40 Variable manufacturing overhead 10 Variable selling and administrative 30 Total variable cost per unit $ 160 Fixed costs: Fixed manufacturing overhead $ 150,000 Fixed selling and administrative 1,040,000 Total...
Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for...
Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for $200. Data for last year’s operations follow:    Units in beginning inventory 0 Units produced 10,400 Units sold 8,600 Units in ending inventory 1,800 Variable costs per unit: Direct materials $ 80 Direct labor 40 Variable manufacturing overhead 10 Variable selling and administrative 30 Total variable cost per unit $ 160 Fixed costs: Fixed manufacturing overhead $ 160,000 Fixed selling and administrative 140,000 Total...
Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for...
Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for $215. Data for last year’s operations follow: Units in beginning inventory 0 Units produced 10,100 Units sold 9,200 Units in ending inventory 900 Variable costs per unit: Direct materials $ 62 Direct labor 31 Variable manufacturing overhead 13 Variable selling and administrative 17 Total variable cost per unit $ 123 Fixed costs: Fixed manufacturing overhead $ 343,400 Fixed selling and administrative 510,000 Total fixed...
Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for...
Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for $200. Data for last year’s operations follow:    Units in beginning inventory 0 Units produced 9,600 Units sold 8,800 Units in ending inventory 800 Variable costs per unit: Direct materials $ 80 Direct labor 20 Variable manufacturing overhead 10 Variable selling and administrative 30 Total variable cost per unit $ 140 Fixed costs: Fixed manufacturing overhead $ 160,000 Fixed selling and administrative 350,000 Total...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT