Chuck Wagon Grills, Incorporated, makes a single producta handmade specialty barbecue grill that it sells...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Chuck Wagon Grills, Incorporated, makes a single producta handmade specialty barbecue grill that it sells for $210. Data for last years operations follow:
Units in beginning inventory
0
Units produced
20,000
Units sold
19,000
Units in ending inventory
1,000
Variable costs per unit:
Direct materials
$ 50
Direct labor
80
Variable manufacturing overhead
20
Variable selling and administrative
10
Total variable cost per unit
$ 160
Fixed costs:
Fixed manufacturing overhead
$ 700,000
Fixed selling and administrative
285,000
Total fixed costs
$ 985,000
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 companys break-even point in terms of the number of barbecue grills sold?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
