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 | 9,600 | |
| 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 fixed costs | $ | 510,000 |
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?
Solutions
ekkarill92 answered 1 year agoRelated 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 9,700 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...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- "Ethical Considerations" Please respond to the following: Reflect upon the responsibilities placed on auditors by the...
- A Japanese company has a bond outstanding that sells for 93 percent of its ¥100,000 par...
- What is the difference among the principles of modularization, abstraction, encapsulation, and separation of interface and...
- An investment project costs $20,100 and has annual cash flows of $4,400 for six years. ...
- PUT IN JAVA PROGRAMMING The StockB class: Design a class named StockB that contains the following...
- Draw a DFA for the following ( ∑ = {0,1}): Set of all strings with.
- In the article from Forbes notes that the goal of a leader is not to clone...
ADVERTISEMENT